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19 November 2015
Baltimore Man Who Robbed Six Businesses in Two Days Sentenced to 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Nick Hornberger, age 47, of Baltimore, today to 11 years in prison followed by three years of supervised release for three counts of robbery. Judge Bennett also entered an order requiring Hornberger to pay restitution of $612.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Kevin Davis.
According to his plea agreement, on March 5, 2014, from 12:40 a.m. to 2:35 p.m. Hornberger robbed the following five stores, stealing a total of $162 from four of these stores:
Royal Farms, Dundalk Avenue, Baltimore County; Royal Farms, O’Donnell Street, Baltimore City; 7-11, Eastern Boulevard, Baltimore County; 7-11, Wise Avenue, Baltimore County; and
Dunkin Donuts, Kenwood Avenue, Baltimore County.The following day, Hornberger robbed a pizza restaurant on Holabird Avenue in Baltimore County of $450.
In each robbery, the cashier or employee from whom Hornberger demanded money believed that Hornberger had a weapon, or was pointing a gun or assault rifle from inside of a white plastic bag. Following his arrest, Hornberger identified himself in photos taken from video surveillance at each robbery. A search warrant was executed at Hornberger’s motel room and a car used in the robberies. Law enforcement seized a toy black assault style rifle stuffed inside a white plastic bag.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City and County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Piper F. McKeithen, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, and Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Baldwin County Man Sentenced to 68 Months for Possession with Intent to Distribute Methamphetamine Ice and Possession of Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
The United States Attorney Kenyen Brown announces that Demond R. Banks, a 41 year old, resident of Daphne, Alabama was sentenced today to 68 months incarceration followed by five years of supervised release for possession with intent to distribute methamphetamine ICE and the use of a firearm in furtherance of his drug trafficking crime.
On June 15, 2015, Mr. Banks pled guilty after being caught with the ICE and firearms in his residence while waiting to receive and distribute additional quantities of ICE to and from another drug dealer.
Baldwin County, Alabama Sheriff’s Office deputies and the Loxley, Alabama Police Department officers investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Augusta Woman Sentenced to More Than Five Years for Making False Tax Claims and Identity TheftRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Joann C. Rittall, 45, of Augusta, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 63 months in prison and three years of supervised release for making false claims against the United States and identity theft. She was also ordered to pay restitution of $219,065 to the U.S. Treasury and $19,896 to the State of Maine. The defendant pleaded guilty to the charges on August 15, 2013.
According to court documents, the defendant offered to assist individuals in filing tax returns and claims under Maine’s Residents Property Tax and Rent Refund "Circuit Breaker" Program. Partly as a result of these efforts, the defendant acquired the names, dates of birth and social security numbers of those individuals. Between 2007 and 2012, she used that personal information to prepare and file electronically from Maine dozens of false income tax returns seeking $435,298 in federal and state tax refunds without the authority or knowledge of the individuals whose identities she had stolen.
The case was investigated by the Internal Revenue Service, Criminal Investigation and Maine Revenue Services.
Armed Robbers Face Life in Federal Prison After Federal Jury Convicts Them on Hobbs Act and Firearms OffensesRead the Press Release
DALLAS — Two north Texas men were convicted late this morning by a federal jury on an array of federal charges stemming from their armed robberies of several Murphy Oil gas/convenience stores in the Dallas-Fort Worth metroplex in June 2014, announced U.S. Attorney John Parker of the Northern District of Texas.
Andre Levon Glover, 21, and Maurice Lamont Davis, 28, both of Fort Worth, Texas, were each convicted on one count of conspiracy to interfere with commerce by robbery and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. In addition, Glover was convicted on four counts, and Davis on two counts, of interference with commerce by robbery. Davis was also convicted on one count of being a felon in possession of a firearm.
The government presented evidence at trial that the defendants committed armed robberies of Murphy Oil USA stores located at: 170 N. Interstate 35E in Lancaster, Texas, on June 16, 2014; 3102 W. Wheatland Road in Dallas on June 21, 2014; 950 N. Walnut Creek Drive in Mansfield, Texas, on June 22, 2014; and 100 Walton Way in Midlothian, Texas, also on June 22, 2014. They used a sawed-off shotgun to rob these stores at gunpoint and steal thousands of dollars of cigarettes from each of the locations and nearly $10,000 in cash from one of the locations. After the last robbery, they led police on a high-speed chase before being arrested.
Each defendant faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine for the conspiracy conviction and each robbery conviction. Each of the firearm offenses carries a maximum statutory penalty of life in federal prison and a $250,000 fine. The felon in possession count carries a statutory maximum sentence of 10 years in federal prison and a $250,000 fine.
Sentencing is set for March 17, 2016, before U.S. District Judge Reed C. O’Connor.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alvarado, Dallas, Lancaster, Mansfield, and Midlothian Police Departments investigated the case.
Assistant U.S. Attorneys John Kull and Brian McKay are in charge of the prosecution.
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Armed Crack Dealer Sentenced to 30 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Tyrone Anthony Jones, 32, of Washington, D.C., was sentenced today to 360 months in prison for possession of a firearm in furtherance of drug trafficking, and conspiracy to distribute 28 grams or more of crack cocaine.
Jones pleaded guilty on Sept. 4, 2015. According to court documents, between December 2014 and July 2015, Jones distributed crack cocaine on at least 13 occasions, accounting for a total of approximately 26 grams of crack. Jones also engaged in an illegal sale of a firearm and ammunition. At the time of Jones’s arrest, law enforcement agents recovered a .45 caliber handgun, ammunition, approximately 8.5 additional grams of crack, and $13,910 from Jones’s apartment. Jones was previously convicted in 2006 of conspiracy to distribute 50 grams or more of crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and M. Jay Farr, Chief of Arlington County Police Department, made the announcement after sentencing by U.S. District Judge C. Cacheris. Assistant U.S. Attorney Tobias D. Tobler and Special Assistant U.S. Attorney Marc J. Birnbaum prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-254.
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Arizona Man Sentenced to Federal Prison for Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE -- Carlos Pua Caudillo, 35, of Phoenix, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 78 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Caudillo was arrested in Aug. 2014, on a criminal complaint charging him with possession of methamphetamine with intent to distribute after DEA agents allegedly found approximately 900 grams of methamphetamine concealed in his baggage during an interdiction investigation at the Greyhound Bus Station in Albuquerque, on Aug. 15, 2014. Caudillo was indicted on the same charge on Sept. 9, 2014.
On May 20, 2015, Caudillo pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. Caudillo admitted that on Aug. 15, 2014, he transported 900 grams of methamphetamine while traveling through Albuquerque on the Greyhound Bus.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
Anchorage Couple Sentenced for Drug Distribution/Money LaunderingRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage couple was sentenced for drug distribution and money laundering by the United States District Court Judge Sharon L. Gleason. The couple was indicted by the federal grand jury in Anchorage for drug distribution and money laundering of drug proceeds over a several year period. A third defendant has recently been arrested in Oregon and remains in custody there.
The Anchorage couple, Billy Ray Lang, Sr., 62, and Tynisha Jean Merriouns, 34, were arrested in January last year after the federal grand jury returned a four count indictment charging them with conspiracy to distribute controlled substances, money laundering conspiracy, possession with intent to distribute and criminal forfeiture of $40,000 in cash seized by investigators during a search of their home.
Billy Ray Lang, Sr. was sentenced to seven years in prison and to forfeit $40,000 in cash. Tynisha Merriouns was sentenced to four years in prison and was required to forfeit $40,000 in cash and Postal Money orders. Both Lang, Sr., and Merriouns pled guilty to conspiring to distribute heroin and methamphetamine, and conspiracy to launder drug proceeds from that conspiracy from December 2013 through October 2014. A third co-conspirator, Billy Ray Lang, Jr., has been arrested in connection with the indictment in the Lower 48 and is awaiting transport to Alaska to face the charges.
Ms. Loeffler commends the Anchorage Police Department and the IRS for the investigation of this case.
Air Force Sergeant Indicted for Attempted Enticement of A Child for SexRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Thomas Allen Vaughn (33, Patrick Air Force Base, Florida) with attempted enticement of a child for sexual activity. If convicted on all counts, he faces a maximum penalty of life in federal prison. The indictment also notifies Vaughn that the United States intends to forfeit any property that he used during the commission of the offense.
According to the indictment, between October 23, 2015, and October 28, 2015, Vaughn used a cellphone and computer to attempt to entice a minor to engage in sex.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Air Force Office of Special Investigations. It will be prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
61 Defendants Charged in Fraud Schemes Involving Tens of Thousands of Stolen Personal IdentitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, J.D. Patterson, Director, Miami Dade Police Department (MDPD), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), Jesse Panuccio, Executive Director, Florida Department of Economic Opportunity (DEO), Steve Steinberg, Chief, Aventura Police Department, J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), Tony Pustizzi, Chief, Coral Springs Police Department (CSPD), Edward J. Hudak, Jr., Chief, Coral Gables Police Department, Rudy Herbello, Assistant Chief, Golden Beach Police Department, Ray Black, Chief, Miramar Police Department, W. Howard Harrison, Chief, Plantation Police Department, Franklin Adderley, Chief, Fort Lauderdale Police Department, Rodolfo Llanes, Chief, Miami Police Department (MPD), and Dan Guistino, Chief, Pembroke Pines Police Department, announce the filing of federal charges against 61 defendants in 43 separate cases, dealing with tens of thousands of stolen identities and millions of dollars stolen from individuals, businesses and government agencies through fraudulent schemes. Today’s cases reaffirm the joint federal, state and local commitment to the prosecution of perpetrators who steal, sell and use personal identification information to commit identity theft fraud schemes.
In an attempt to combat the rising wave of stolen identity tax refund scams, and armed with recent directives from the Department of Justice’s Tax Division, making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012. With the escalating spread of fraud offenses, the Strike Force has broadened the scope of its focus and is now identified as the Identity Theft Fraud Strike Force.
The cases announced in this takedown demonstrate the pernicious and prevalent nature of identity theft fraud. This fraud permeates every aspect of the public sphere and private industry. The expanded scope of the Identity Theft Fraud Strike Force recognizes the breadth of this problem and demonstrates law enforcement’s ability to tackle the ever evolving identity theft threat. No longer limited to stolen identity tax refund fraud or any type of government benefit fraud, the Strike Force is investigating and prosecuting cases including an intrusion into proprietary government databases, takeovers by identity thieves of accounts as diverse as U.S. Social Security accounts, retail credit card accounts, and bank accounts, and the use of skimmers to steal valuable personal identity information. These cases demonstrate that law enforcement in general and the Strike Force in particular continue to adapt to meet this insidious identity theft threat.
Since the inception of the Strike Force, we have charged 433 defendants, who were responsible for approximately $352 million in intended losses and in excess of $142 million in actual SIRF fraud loss.
The members of the Strike Force, and participating agencies, include the United States Attorney’s Office, IRS-CI, TIGTA, SSA-OIG, ICE-HSI, FBI, MDPD, USSS, USPIS, DOL-OIG, ATF, USMS, DEO, Aventura Police Department, NMBPD, BSO, CSPD, Coral Gables Police Department, Golden Beach Police Department, Miramar Police Department, Plantation Police Department, Fort Lauderdale Police Department, MPD, and Pembroke Pines Police Department.
United States Attorney Wifredo A. Ferrer stated, “Identity theft continues to plague our community in evolving ways. Identity thieves are now using stolen personal identity information to infiltrate proprietary government databases and accounts of private individuals at banks, retailers and other financial institutions. We remain committed to stopping identity thieves who cost individuals and entities across the public and private sectors billions of dollars. The cost of identity theft cannot be measured in dollars alone, as it further undermines the financial stability of identity theft victims and wreaks havoc on their lives. Our Office thanks the dedicated members of federal, state and local law enforcement who work tirelessly to bring these offenders to justice.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “As a result of today’s coordinated effort, we have charged and arrested individuals who participated in different roles related to stolen identity refund fraud (SIRF) and numerous other identity theft schemes. IRS-CI remains committed to allocating time and resources to investigating those who victimize individuals for their own personal gain. The investigation of egregious return preparers and SIRF cases remain a top priority for IRS-CI.”
“We estimate that criminals steal billions of dollars of IRS tax refunds each year by utilizing various schemes involving stolen identities. This crime victimizes not only the person whose identity has been stolen, but every American taxpayer. Prosecuting individuals for stealing identity information and refunds will continue to be one of our top investigative priorities,” said TIGTA Deputy Inspector General for Investigations Timothy Camus.
“Social Security payments are a lifeline for many Americans who are retired or unable to work due to disability. These indictments are a testament to our serious commitment to pursuing those who would victimize Social Security beneficiaries. Our office is gratified by the U.S. Attorney’s shared commitment to investigate and prosecute this type of fraud, which affects all Americans,” Special Agent in Charge Margaret Moore-Jackson, Social Security Administration, Office of the Inspector General.
“Ranging from tax fraud to immigration fraud violations, ICE-HSI strives to disrupt identity theft on many levels to protect our citizens and financial infrastructure,” said Robert C. Hutchinson, Acting Special Agent in Charge of HSI Miami. “We will continue to utilize our very broad authorities and vast skills to support this important mission with our partner agencies.”
Juan J. Perez, Acting Director, Miami-Dade Police Department, announced that “The investigations and arrests highlighted today are yet another example of how much can be accomplished through strong relationships and collaboration between law enforcement agencies at all levels. The Miami-Dade Police Department remains committed to this spirit of teamwork and to using all tools available in combating the crimes of fraud and identity theft which affect the entire community.”
“The U.S. Mail remains one of the most secure means of transmitting personal information,” said Ronald Verrochio, Inspector in Charge, USPIS, Miami Division. “The Postal Inspection Service is committed to ensuring the nation’s mail system is not exploited by criminals for illicit financial gain.”
“An important part of the DOL-OIG mission is to investigate unemployment insurance fraud, often perpetrated through identity theft. We are committed to continuing to work with our Identity Theft Strike Force partners and the law enforcement agencies in other affected states in an effort to combat this issue,” stated Rafiq Ahmad, Special Agent in Charge of the Atlanta Regional Office of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Florida Department of Economic Opportunity Executive Director Jesse Panuccio said, “Identity theft and related fraud have reached crisis levels, and the Department of Economic Opportunity has made fighting this fraud a top priority. Over the last two years, we have stopped 135,000 fraudulent claims with a potential value of $558 million. The criminals who attempt this fraud need to understand that they will be caught, arrested, and prosecuted. We are thankful for our partnership with, and the hard work of, the U.S. Department of Labor’s Office of Inspector General and the U.S. Attorney for the Southern District of Florida.”
Today, U.S. Attorney Ferrer, joined by members of the Identity Theft Fraud Strike Force, announce the most recent results of their investigative efforts. The cases announced today include:
A. STOLEN DATA
1. United States v. Marvin Ricardo Herard, Case No. 15-20898-CR-Gayles
On November 17, 2015, Marvin Ricardo Herard, 26, of Miami, was charged in a thirteen-count indictment for his participation in an identity theft tax fraud scheme.
According to the allegations contained in the indictment, between October 2011 and July 2015, Herard was involved in a stolen identity refund scheme that used stolen personal identification information to file false federal income tax returns. Herard and his co-conspirators also used stolen personal identification information to access the Internal Revenue Service’s “Get Transcript” service and obtain tax records of their identity theft victims. Herard and his co-conspirators caused the IRS to deposit the fraudulent tax returns onto prepaid debit cards and bank accounts controlled by them, and Herard used a debit card number registered to another person.
Herard was charged with conspiracy to commit wire fraud, wire fraud, aggravated identity theft, possession of fifteen or more unauthorized access devices, and use of unauthorized access devices.
Mr. Ferrer commended the investigative efforts of IRS-CI, TIGTA and NMBPD. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
2. United States v. Arvis Jamar Lawson, Case No. 15-06494-MJ-Valle
On November 17, 2015, Arvis Jamar Lawson, 30, of Broward County, was charged by complaint for his participation in an access device fraud scheme.
According to the allegations contained in the complaint, Lawson possessed and exchanged with co-conspirators numerous individuals’ personal identification information, including names, dates of birth and Social Security numbers. Lawson also possessed personal identification information for an individual who had been the victim of a fraudulent tax return filing.
Mr. Ferrer commended the investigative efforts of TIGTA, IRS-CI, NMBPD and Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
B. ACCOUNT TAKEOVERS
3. United States v. Judel Jean-Charles, Case No. 15-6490-MJ-Valle
On November 16, 2015, Judel Jean-Charles, 24, of Miami, was charged by criminal complaint with using an unauthorized access device to obtain a thing of value aggregating $1,000 or more and aggravated identity theft.
According to the allegations contained in the criminal complaint, on or about July 18, 2015, an anonymous person called the Miramar Police Department to report suspicious activity at an ATM located at a Wells Fargo branch located in Miramar, Florida. An officer from the Miramar Police Department responded to the scene and observed an individual, later identified as Jean-Charles, matching the description provided by the anonymous caller.
While the officer was speaking to Jean-Charles, the defendant dropped something on the ground at the rear of a vehicle. As a second police officer arrived, Jean-Charles fled the scene on foot leading the officers on a chase through the fenced in yards of several homes in the area before he was caught by the officers. A search of Jean-Charles recovered $7,200 in cash from his pocket. The officers also recovered two Visa credit cards in other individuals’ names, one from the defendant’s flight path and the other from the vehicle. The defendant was arrested on state charges.
A subsequent investigation revealed that the two Visa credit cards in other individuals’ names were issued by the same bank (the “Victim Bank”). Investigators made contact with the Victim Bank and learned that the Visa credit cards belonged to individuals living in the State of Ohio. Investigators further learned that both accounts had been compromised by unidentified individuals who called the Victim Bank and (i) ordered replacement cards to be sent to an address in Florida and (ii) changed the PIN numbers on the respective accounts. Further, it appears that the unidentified callers utilized masking software when they called the Victim Bank to make it appear that they were calling from the account holders’ phone numbers on record with the Victim Bank in a process known as “spoofing.” In total, the Victim Bank reported to law enforcement that on July 18, 2015, the two replacement cards recovered by the Miramar Police Department were used to make an ATM withdrawal in the amount of $7,227 from the Wells Fargo branch in Miramar, Florida, and a $6,424 ATM withdrawal from a Wells Fargo Branch in Pembroke Pines, Florida.
Mr. Ferrer commended the investigative efforts of Aventura Police Department, Miramar Police Department and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
4. United States v. Jean Ductan, Case No. 15-200861-CR-Ungaro
On November 5, 2015, Jean Ductan, 34, of Miami, was charged in a five-count indictment for his participation in a debit card fraud scheme.
According to the allegations contained in the indictment, from October 2014 to October 15, 2015, Ductan engaged in a conspiracy to use unauthorized debit cards to obtain something of value aggregating $1,000 or more. Members of the conspiracy ordered replacement pins and debit cards for at least three victims’ accounts and stole the replacement pins and debit cards from the mail at the victims’ addresses. Ductan then used the debit cards to withdraw at least $4,000 from the victims’ accounts at ATMs in Miami-Dade and Broward Counties.
According to additional court documents, on October 15, 2015, law enforcement officers observed Ductan drive up to the mailbox of a residence in Plantation, Florida, sort through the mail, and drive away. During an investigatory stop of the vehicle, officers found two envelopes addressed to that same residence. The envelopes contained debit cards that had been taken without the knowledge and authority of the addressee.
The indictment charges Ductan with conspiracy to use unauthorized debit cards to obtain $1,000 or more, use of unauthorized debit cards to obtain $1,000 or more, aggravated identity theft, and theft of mail.
Mr. Ferrer commended the investigative efforts of the USPIS. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
5. United States v. Nadia Coles, et al., Case No. 15-20827-CR-Gayles
On November 17, 2015, Nadia Coles, 36, Deidra Steed, 27, Brittany Roby, 28, Kevin Bennet, 37, Zakeylia Ward, 23, and Eugene Rodriguez, 21, all of Miami, were charged in a seventeen-count indictment for their participation in a conspiracy to use stolen personal identity information (PII) to take over unauthorized credit card accounts at department stores in South Florida.
According to the allegations contained in the indictment, at least as early as August 2015, the defendants and their co-conspirators would use the stolen PII to call and fraudulently add themselves as authorized users of the victims’ credit card accounts. The defendants would then travel to the department stores and request to purchase large amounts of merchandise using the victims’ credit card accounts. The defendants and their co-conspirators would enter the true customers’ stolen Social Security number into the keypad at the store counter or provide the customers’ PII directly to the cashier in order to complete the purchases.
Mr. Ferrer commended the investigative efforts of the MDPD Economic Crimes Bureau/Organized Fraud Intelligence Squad (OFIS). The case is being prosecuted by Assistant U.S. Attorney Timothy J. Abraham.
6. United States v. Frisler Clairvil, Case No. 15-60295-CR-Dimitrouleas/Snow
On November 17, 2015, Frisler Clairvil, 29, of Lauderdale Lakes, was charged in an eight-count indictment for his participation in a conspiracy to use stolen personal identity information (PII) to commit Social Security fraud.
According to the allegations contained in the indictment, at least as early as June 2013, the defendant and his co-conspirators would use the stolen PII to obtain Social Security benefit payments that belonged to Social Security beneficiaries. To accomplish this scheme, Clairvil and his co-conspirators logged onto the Social Security Administration website, “My Social Security,” with the victims’ names, dates of birth, and Social Security numbers to open online accounts in those victims’ identities. Once the online accounts were opened, Clairvil and his co-conspirators redirected the Social Security benefit payments from the victims to themselves by having the funds deposited into bank accounts which they controlled. To further conceal their criminal activity, Clairvil and his co-conspirators opened these bank accounts using stolen PII of other persons.
From June 2013 to October 2015, Clairvil and his co-conspirators used the stolen PII of over 1,300 victims and stole over $300,000 in Social Security benefits.
Clairvil was charged with conspiracy to use unauthorized access devices, access device fraud, theft of government money, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorney Timothy J. Abraham.
7. United States v. Alexander Bernard Harris, Case No. 15-20850-CR-Middlebrooks
On October 30, 2015, Alexander Bernard Harris, 25, of Miami, was charged in a six-count indictment for the theft of Social Security benefits.
According to the allegations contained in the indictment, Harris re-directed the Social Security benefits of other individuals into bank accounts in his own name by stealing the personal identifying information of Social Security beneficiaries.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
8. United States v. Hervens Steven Sanon, Case No. 15-20849-CR-Gayles
On October 30, 2015, Hervens Steven Sanon, 29, of Miami, was charged in a five-count indictment for the theft of Social Security benefits.
According to the allegations contained in the indictment, Sannon stole the Social Security benefits of other individuals and deposited those benefits into his own account.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
9. United States v. Samonique Honer, Case No. 15-03497-MJ-Simonton
On November 18, 2015, Samonique Honer, 26, of Miami, was charged by criminal complaint for her participation in a stolen identity Social Security Administration (SSA) benefit and tax fraud scheme.
According to the allegations contained in the criminal complaint, from approximately February 2014, and continuing through at least October 2014, Honer conspired with others to knowingly and willfully receive for her own use and gain SSA benefit payments and United States Department of Treasury tax refund checks, knowing that the benefit payments and tax refunds had been stolen and converted. Honer and her co-conspirators obtained SSA benefits and tax information belonging to other individuals without their knowledge and authority. They subsequently unjustly enriched themselves by obtaining SSA benefit payments and United States Department of Treasury tax refunds, to which they were not entitled.
According to the complaint, on or about February 25, 2014, Honer incorporated Hooner Financial Accounting Services, LLC (Hooner Financial) a Florida corporation, with its principal place of business in Mimi-Dade County. Honer was listed on corporate documents as the manager and registered agent of Hooner Financial. Bank records indicate that on or about February 28, 2014, Honer opened a Citibank, N.A. bank account in the name of Hooner Financial. One debit card, with a corresponding PIN, was issued in connection with the account. Honer was the only signatory on the bank account. Honer and her co-conspirators designated this bank account for the deposit of the fraudulently obtained SSA payments and federal income tax refunds. Surveillance video captured conspirators withdrawing funds from this account for their own use and benefit.
The criminal complaint charges the defendant with conspiracy to commit an offense against the United States, and theft of government property.
Mr. Ferrer commended the investigative efforts of the SSA-OIG and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
10. United States v. Emelia Chang and Ashley Palmieri, Case No. 15-6492-MJ-Valle
On November 17, 2015, Emelia Chang, 25, of Miami, and Ashley Palmieri, 24, of Miami Gardens, were charged by criminal complaint for their participation in a debit card fraud scheme to order replacement debit cards and personal identification numbers (“pins”) to be sent to victims’ addresses; steal those debit cards and pins from the mail; and use them to withdraw funds from victims’ accounts without authorization.
According to the allegations contained in the criminal complaint, from October 2, 2014 to October 21, 2014, Chang and Palmieri engaged in a conspiracy to use unauthorized debit cards to obtain something of value aggregating $1,000 or more. Members of the conspiracy ordered replacement pins and debit cards for at least two victims’ accounts and stole the replacement pins and debit cards from the mail at the victims’ addresses. Chang then used the debit cards to withdraw at least $5,100 from the victims’ accounts at ATMs in Broward County. On October 21, 2014, law enforcement officers observed Palmieri drive up to a mailbox in Pembroke Pines, Florida, take the mail, and drive away. During an investigatory stop of the vehicle, officers found mail addressed to that same residence, including a letter that appeared to contain a debit card and one that appeared to contain a pin number. In a post-Miranda statement, Palmieri admitted to driving Chang to banks, where Chang made ATM withdrawals.
The complaint charges Chang and Palmieri with conspiracy to use unauthorized debit cards to obtain $1,000 or more.
Mr. Ferrer commended the investigative efforts of USPIS. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
C. SKIMMING CASES
11. United States v. Anthony Nunovero and Edelso Sanchez, Case No. 15-20884-CR-Huck
On November 13, 2015, Anthony Nunovero, 29, and Edelso Sanchez, 53, both of Miami, were charged in an eight-count indictment for their participation in a conspiracy to illicitly install credit card skimmers at gas pumps in South Florida gas stations in order to steal the credit card account information of unsuspecting customers and then making and using counterfeit credit cards with the stolen information.
According to the allegations contained in the indictment, at least as early as August 2015, the defendants and their co-conspirators installed credit card scanning devices which were modified to attach to the credit card readers in area gas pumps so that the scanners would capture the credit card account information of unsuspecting customers. The defendants and their co-conspirators would open the targeted gas pumps, install the credit card scanning device, close the pump and replace the gas pump tamper-proof seal stickers with counterfeit tamper-proof stickers. They would later collect the skimmer and create counterfeit credit cards with the credit card account information that had been taken from unsuspecting customers.
Mr. Ferrer commended the investigative efforts of the MDPD Economic Crimes Bureau/Organized Fraud Intelligence Squad (OFIS). The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
12. United States v. Randy Normul Pierre, Case No. 15-20661-CR-Altonaga
Randy Normul Pierre, 29, of Miami, was charged in a six-count indictment for his participation in an identity theft scheme.
According to the allegations contained in the indictment, the defendant possessed device-making equipment, including State of Florida seal adhesives and card stock, as well as the Social Security numbers of fifteen or more persons. On September 23, 2015, Pierre pled guilty to identity theft and the unlawful possession of device-making equipment. Pierre is scheduled to be sentenced on November 30, 2015 before U.S. District Court Judge Cecilia M. Altonaga.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
13. United States v. Marlin Jean, Case No. 15-20870-CR-Moreno
On November 6, 2015, Marlin Jean, 24, of Miami, was charged in a three-count indictment for possessing 15 or more counterfeit credit cards and credit card account numbers, access device-making equipment, and a stolen firearm.
Mr. Ferrer commended the investigative efforts of the USSS and MPD. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
14. United States v. Rolando Aguilar Conde, Case No. 15-20877-CR-Martinez
On January 30, 2015, Rolando Aguilar Conde, 29, of Miami, was charged in a two-count indictment with unauthorized possession of device-making equipment and aggravated identity theft.
According to the allegations contained in the indictment and other court records, on September 22, 2015, law enforcement executed a search warrant at Conde’s residence pursuant to an investigation of identity theft and credit card fraud of other residents, including the defendant’s mother. During the search, law enforcement officers discovered, among other things, a credit card “skimming” device and a credit card embossed with Conde’s name and encoded with a debit account number issued to another person in Conde’s bedroom. In addition, law enforcement discovered 28 other credit cards embossed with Conde’s name and encoded with credit and debit card account numbers issued to other persons. The investigation also revealed that the “skimming” device contained a debit card account number that had been issued to another person.
Mr. Ferrer commended the investigative efforts of the ICE-HSI and the CSPD. The case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
D. MONEY SERVICE BUSINESSES
15. United States v. Junior Jean Baptiste, Case No. 15-20777-CR-Martinez
On October 1, 2015, Junior Jean Baptiste, 35, of Miami, was charged in a twenty-count indictment for his participation in a stolen identity refund fraud scheme involving the cashing of fraudulently obtained tax refund checks.
According to the allegations contained in the indictment, Baptiste operated a check-cashing store called Surveillance Master LLC in North Miami, Florida from 2010 to 2012. At this store, the defendant cashed fraudulently obtained tax refund checks for a fifty-percent fee and knowingly possessed hundreds of false identification documents corresponding to tax refund checks. Hundreds of the tax refund checks had been issued in the names of deceased persons. In total, the defendant cashed over $10 million in fraudulently obtained tax refund checks. Among other things, Baptiste used proceeds from this fraud scheme to purchase a cargo ship, registered in Palau.
The defendant was charged with possession of five or more false identification documents and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
16. United States v. Gino Denis, Case No. 15-03496-MJ-Simonton
United States v. Sebastien Dumond, Case No. 15-20839-CR-Moreno
On November 18, 2015, Gino Denis, 32, of Miami Lakes, was charged by criminal complaint for his participation in a stolen identity refund fraud scheme involving the cashing of fraudulently obtained tax refund checks. Sebastien Dumond, 25, of Miami, was previously charged in a one-count information for his role in this scheme.
According to the allegations contained in the criminal complaint, Denis operated Tiblanc Multi-Services in Miami, Florida in 2012 and 2013. At this store, Denis cashed approximately $3.8 million in fraudulently obtained tax refund checks. Denis directed the proceeds of this fraud for his own personal benefit by wiring funds to his wife’s account, to his landlord for rent, and to others for cash payments.
According to the complaint, in June 2015, Denis discussed cashing fraudulently obtained tax refund checks, in exchange for a 30% facilitator’s fee. Denis directed co-conspirator Dumond to cash the fraudulently obtained checks with using false identification documents. Dumond cashed approximately $120,000 in fraudulently obtained tax refund checks.
Denis was charged with conspiracy to commit theft of government money, theft of government money, and money laundering. Dumond was charged with conspiracy to commit theft of government money.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI, FBI, USSS, Coral Gables Police Department, and Golden Beach Police Department. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
E. EFIN/TAX PREPARATION BUSINESS FRAUD
17. United States v. Johny Wolf Jasmin and Carneisha Patrice Mitchell, Case No. 15-60276-CR-Zloch
Johny Wolf Jasmin, 32, of Boca Raton, and Carneisha Patrice Mitchell, 31, of Miami, were charged in a ten-count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the allegations contained in the indictment, from on or about September 5, 2013, to March 4, 2015, in Hollywood, Florida, the defendants used various Electronic Filing Identification Numbers (“EFIN’s”), to file false and fraudulent federal income tax returns with the Internal Revenue Service (“IRS”) seeking refunds using stolen personal identifying information (“PII”) that was issued to living and deceased individuals. After the fraudulent tax returns were received by the IRS, the defendants arranged to have the tax refund payments loaded to various pre-paid debit cards in the names of taxpayers whose names and Social Security numbers were used to file false and fraudulent tax returns or issued by check in the names of taxpayers whose names and Social Security numbers were used to file false and fraudulent tax returns. In total, approximately $1.4 million in fraudulent tax refunds were sought from the IRS.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
18. United States v. Shontavia Monique Williams, Case No. 15-20878-CR-Altonaga
On November 13, 2015, Shontavia Monique Williams, 32, of Miami, was charged by indictment with participating in a fraudulent income tax refund scheme.
According to the allegations contained in the indictment, A-Z Tax Solutions, Inc. (“A-Z Tax”) was a business in Opa-Locka, Florida. Williams was the registered agent and owner of A-Z Tax, a tax preparation business. Williams maintained a bank account, in the name of A-Z Tax. The IRS permitted tax professionals to submit tax returns in the names of other individuals, in accordance with the rules and requirements of the IRS’s e-file program.
From January 17, 2012, through February 13, 2012, Williams filed income tax returns claiming tax refunds in the names of other people, knowing such claims were false, fictitious, and fraudulent. Williams used, without authorization, the Social Security numbers belonging to other individuals, to file the fraudulent claims. The claims totaled approximately $41,504.00. From February 1, 2012 through February 8, 2012, Williams received a total of approximately $33,858 in fraudulent tax refunds via U.S. Treasury electronic funds transfers issued to various payees.
Williams is charged with six counts of filing false, fictitious, and fraudulent individual income tax returns; five counts of theft of government property; and five counts of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI, City of Miami Police Department and NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ilham A. Hosseini.
19. United States v. Wolf Obin, Stanley Muscova, and Rosny Muller, Case No. 15-20885-CR-Gayles
On November 13, 2015, Wolf Obin, 32, of Miami-Dade, Stanley Muscova, 28, of Miami-Dade, and Rosny Muller, 29, of Broward County, were charged in an eight-count indictment for their participation in a conspiracy to commit tax fraud using other peoples’ stolen identities.
According to the allegations contained in the indictment, beginning in or around October 2011, Obin, Muscova, and Muller fraudulently obtained Electronic Filing Identification Numbers (“EFINs”) in the names of other individuals who acted as “straw” EFIN holders which allowed the defendants to submit tax returns in the names of other individuals. The defendants then used those EFINs, as well as EFINs in their own names, to file false and fraudulent federal income tax returns using the stolen personal identifying information of other individuals without their knowledge and authority. When law enforcement executed a search warrant on the defendants’ Aventura apartment, they discovered the personal identifying information of more than 1,600 individuals. Through their tax filings, the defendants claimed approximately $2,900,000 and caused the IRS to pay approximately $1,700,000 in illicit federal tax refunds.
Mr. Ferrer commended the investigative efforts of the IRS-CI and Aventura Police Department. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
20. United States v. David Robersant Louis, Case No. 15-6495-MJ-Valle
On November 17, 2015, David Robersant Louis, 36, of Miami, was charged by criminal complaint with possession of 15 or more unauthorized access devices, that is, Social Security numbers issued to other persons.
According to the allegations contained in the criminal complaint, Louis possessed in his computers the personal identifying information (PII) of hundreds of individuals, including their Social Security numbers, dates of birth, and names. This PII was used to file fraudulent tax returns from an IP address linked to Louis, in Miramar, Florida.
Mr. Ferrer commends the efforts of ICE-HSI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
F. STOLEN TREASURY CHECKS
21. United States v. Fidel Rodriguez, Case No. 15-20743-CR-Martinez
On September 24, 2015, Fidel Rodriguez, 56, of Miami, was charged in a one-count information for his involvement in a stolen identity refund fraud scheme and account takeover scheme involving the cashing of fraudulently obtained checks.
According to documents filed in Court, Rodriguez was allegedly part of a conspiracy involving the filing of at least $14 million in fraudulent large-dollar tax refund claims—each ranging from approximately $140,000 to $170,000—in 2014. These fraudulent refund requests were submitted for payment using stolen identity information. Over 100 of these tax refunds were directed for payment to the same address in Hialeah. The defendant is on surveillance video from a local bank depositing two fraudulently obtained tax refund checks—each totaling approximately $160,000—that had been in September and October 2014. Separately, Rodriguez also deposited fraudulently obtained temporary bank checks—one for approximately $195,000 and one for approximately $400,000—using compromised bank account information at a local bank in Miami in December 2014 and January 2015.
Rodriguez was charged with one count of conspiracy to commit theft of government money.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI, FBI, and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
22. United States v. Shirley Saint-Louis, Case No. 15-3498-MJ-Simonton
On November 17, 2015, Shirley Saint-Louis, 20, of North Miami, was charged by criminal complaint for her theft of government money.
According to the allegations contained in the criminal complaint, in December 2014, Saint-Louis deposited into her own bank accounts Department of Treasury checks for Social Security benefits and tax refunds that belonged to other individuals and which had been altered so that Saint-Louis’ name and address appeared on the check instead of the intended beneficiaries’ name and address.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorney Timothy J. Abraham.
23. United States v. Anthony Maycock and Roshea Alexis Reid, Case No. 15-20852-CR-Moore
On November 3, 2015, Anthony Maycock, 57, and Roshea Alexis Reid, 21, both of Miami, were charged in a two-count indictment with conspiracy to commit an offense against the United States and theft of government money.
According to the allegations contained in the indictment, Maycock, Reid, and their co-conspirators obtained and altered a United States Treasury check in the amount of $31,401 and deposited it into a bank account controlled by them.
Mr. Ferrer commended the investigative efforts of TIGTA. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
24. United States v. Shonteaka Moore, Case No. 15-20880-CR-Lenard
On November 13, 2015, Shonteaka Moore, 31, of Miami Gardens, was charged in a four-count indictment with theft of government money and aggravated identity theft.
According to the allegations contained in the indictment, Moore knowingly received, concealed, and retained at least two United States Department of Treasury checks with an aggregate value of more than $1,000. Moore intended to convert these checks for her own personal use and gain, despite knowing they had been stolen. Specifically, on April 26, 2014, Moore deposited a United States Department of Treasury tax refund check issued in the amount of $1,441 into a SunTrust bank account that she controlled. Then, on May 20, 2014, she deposited another United States Department of Treasury tax refund check issued in the amount of $10,000 into the same bank account. Both times, Moore knowingly transferred the money to herself, without lawful authority, by using the names and signatures of the victims.
Mr. Ferrer commended the investigative efforts of the Aventura Police Department and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Anne McNamara.
25. United States v. Jean Daniel Julien, Case No. 15-8610-CR-Brannon
On November 17, 2015, Jean Daniel Julien, was charged by criminal complaint for his participation in a stolen identity tax fraud scheme which occurred in Palm Beach and Broward Counties.
According to the allegations contained in the criminal complaint, Julien received a $56,000 U.S. Treasury refund check in the name of “D.H.” Another individual opened a bank account in D.H.’s name, and the defendant deposited the refund check into this account. Julien then deposited a $55,000 starter check written on the D.H. account into a business account controlled by Julien’s wife. During the next three days, most of the $55,000 was withdrawn from the account.
The complaint charges the defendant with theft of government money and bank fraud.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney William Zloch.
26. United States v. Lori Sue Lotter, Case No. 15-20848-CR-Moreno
On October 30, 2015, Lori Sue Lotter, 41, of Miami, was charged by indictment with theft of a United States Department of Treasury tax refund check.
According to the allegations contained in the indictment, on May 19, 2014, Lotter deposited into her own bank account a Department of Treasury tax refund check that belonged to another individual and which had been altered so that Lotter’s name and address appeared on the check instead of the intended beneficiaries’ name and address.
Mr. Ferrer commended the investigative efforts of the USSS. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
27. United States v. Johanne Hilaire, Case No.15-20873-CR-Seitz
On November 10, 2015, Johanne Hilaire, 30, of Miami, was charged by indictment with four counts of theft of government money. According to the allegations contained in the indictment, Hilaire retained for her own use and gain over $10,000 of stolen United States Treasury checks.
Mr. Ferrer commended the investigative efforts of TIGTA. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
28. United States v. Darius Terrell Parke, Case No.15-60279-CR-Cohn
On November 10, 2015, Darius Terrell Parke, 19, of Miami, was charged by indictment with fraudulent endorsement of a United States Treasury check, theft of government money, and aggravated identity theft. According to the allegations contained in the indictment, Parke fraudulently endorsed and cashed a United States Treasury check that belonged to another individual.
Mr. Ferrer commended the investigative efforts of IRS-CI, TIGTA and the Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
29. United States v. Tewon Ieshia Thompson, Case No.15-60280-CR-Zloch
On November 10, 2015, Tewon Ieshia Thompson, 22, of Fort Lauderdale, was charged by indictment with fraudulent endorsement of a United States Treasury check, theft of government money, and aggravated identity theft. According to the allegations contained in the indictment, Thompson fraudulently endorsed and cashed a United States Treasury check that belonged to another individual.
Mr. Ferrer commended the investigative efforts of the IRS-CI, TIGTA and the Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
30. United States v. Bertram Marvin White, Case No.15-60292-CR-Marra
On November 17, 2015, Bertram Marvin White, 30, of Miami, was charged by indictment with fraudulent endorsement of a United States Treasury check, theft of government money, and aggravated identity theft. According to the allegations contained in the indictment, White fraudulently endorsed and cashed a United States Treasury check that belonged to another individual.
Mr. Ferrer commended the investigative efforts of IRS-CI, TIGTA and the Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
G. STOLEN IDENTITY BENEFITS/CREDIT CARD FRAUD
31. United States v. Alexandra Fernandez, Case No. 15-20881-CR-King
On November 13, 2015, Alexandra Fernandez, 25, of Miami, was charged in a three-count indictment with one count of unlawful use of one or more access devices, and two counts of aggravated identity theft.
According to the allegations contained in the indictment, from approximately July 13, 2015, through July 23, 2015, Fernandez knowingly used credit card numbers belonging to another person in order to fraudulently obtain more than $1,000 worth of items. In doing so, on at least two occasions, Fernandez purposely transferred, possessed, and used, without lawful authority, the victim’s means of identification to obtain merchandise.
Mr. Ferrer commended the investigative efforts of the Aventura Police Department and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
32. United States v. Bechir Delva and Dann Kenny Delva, Case No. 15-60209-CR-Dimitrouleas
Bechir Delva, 24, and Dan Kenny Delva, 27, both of Miramar, were charged in a seven-count indictment for their participation in an identity theft scheme.
According to the allegations contained in the indictment, the defendants conspired to possess debit cards and Social Security numbers issued to other persons and possessed several firearms, including an AR-15 rifle, a SIG 522 rifle and a .380 pistol, to protect the stolen items. The indictment charges the defendants with one count of conspiracy to possess fifteen or more unauthorized access devices, one count of possession of fifteen or more unauthorized access devices, and five counts of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
33. United States v. Ricardo Jean Loiseau, Case No. 15-60208-CR-Cohn
Ricardo Jean Loiseau, 27, of Hallandale Beach, was charged in a four-count indictment for his participation in an identity theft scheme.
According to the allegations contained in the indictment, the defendant possessed debit cards registered to other individuals. The indictment charges the defendant with one count of possession of fifteen or more unauthorized access devices and three counts of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
34. United States v. Stacy A. Gaines and Nicaya T. Cooper, Case No. 15-60275-CR- Dimitrouleas
On November 5, 2015, Stacy A. Gaines, 39, and Nicaya T. Cooper, 35 both of Tamarac, were charged by criminal information for their participation in a stolen identity tax fraud scheme.
According to the information, from February 2010, through July 2013, Gaines and Cooper filed, or caused to be filed, fraudulent federal tax returns with the Internal Revenue Service (“IRS”) seeking refunds in the amount of $299,433.88. The IRS refunded approximately $279,866.39 for those fraudulently filed tax returns.
According to the investigation, Cooper opened bank accounts at Regions Bank and gave Gaines access to those accounts to deposit the various fraudulent refunds. Gaines filled out the fraudulent tax returns seeking refunds by hand utilizing the personal identification information (“PII”) from various individuals and mailed them into the IRS for processing. The true taxpayers did not give Gaines or Cooper permission to file fraudulent returns on their behalf.
The defendants are charged with participating in a wire fraud conspiracy.
Mr. Ferrer commended the investigative efforts of IRS-CI, BSO and the USSS South Florida Organized Fraud Task Force (SFOTF). The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
35. United States v.Damian Williams, Case No. 15-20856-CR-Moreno
On November 3, 2015, Daiman Williams, 23, of North Miami Beach, was charged in a four-count indictment for his participation in a stolen identity tax fraud scheme.
According to the allegations contained in the indictment, on or about January 18, 2013, a state probation compliance check was performed on Williams at his residence in North Miami Beach, FL. During the compliance check of Williams’ residence, officers found a Toshiba laptop that contained a list of personal identifying information (PII). A forensic examination of the laptop revealed a series of documents containing over two thousand (2,000) pieces of PII, which included the names, Social Security numbers, and dates of birth for hundreds of school teachers and medical patients. In addition, credit reports, tax returns, and other miscellaneous PII were found in the laptop. Further investigation revealed that several of the individuals identified from the laptop had been victims of identity theft related to the fraudulent filing of their federal income tax returns.
On or about August 26, 2014, another state probation compliance check was performed on Williams’ residence. In connection with the compliance check, law enforcement searched Williams’ phone and found a video of the defendant holding a firearm and then storing the firearm in the trunk of a white Lexus vehicle. The vehicle was found in the driveway of Williams’ residence. Officers opened the trunk of the vehicle and discovered the firearm, ammunition and PII for more than 50 individuals, including names, dates of birth and Social Security numbers of homeowners’ insurance applications and completed income tax forms.
The indictment charges the defendant with possession of fifteen or more unauthorized access devices and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, DEO, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
36. United States v. Edward Fiol, Case No. 15-20827-CR-Graham
On October 23, 2015, Edward Fiol, 59, of Miami, was charged in a ten count indictment for his participation in a scheme to embezzle money from the Social Security Administration.
According to the allegations contained in the indictment, from January 2011 through December 2013, Fiol embezzled money payable to an individual with the initials "M.F." and improperly converted the money to his own use.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant United States Attorney Cary O. Aronovitz.
37. United States v. Quinzella Jjovanna Romer, Case No. 15-06498-MJ-Valle
On November 18, 2015, Quinzella J. Romer, 39, of Miami, was charged by criminal complaint for her participation in possessing over 60 persons names and Social Security numbers that she unlawfully accessed while working at a health insurance company.
According to the allegations contained in the criminal complaint, on April 8, 2014, Romer was issued a traffic citation and law enforcement determined that she had an outstanding warrant for arrest due to petit theft. A pat down was conducted of Romer’s person and law enforcement found a Florida driver’s license in another person’s name in her jacket. After obtaining a search warrant, law enforcement searched Romer's cell phone where they found over 20 pictures of a computer screen containing personal identifying information (PII), names and Social Security numbers of health insurance customers. Upon further investigation, law enforcement determined that at least three of the individuals whose PII was found in Romer’s phone were victims of identity theft in 2013.
The criminal complaint charges Romer with knowingly, and with intent to defraud, possessing fifteen or more unauthorized access devices, that is names and Social Security numbers issued to other persons, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department. The case is being prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
38. United States v. Wilna Joseph and Maraldy Necker Jean, Case No. 15-60277-CR-Zloch
On November 6, 2015, Wilna Joseph, 36, and Maraldy Necker Jean, 39, both of Broward County, were indicted for their involvement in an identity theft conspiracy scheme involving the trafficking in, use, and possession of unauthorized debit card account numbers.
According to the allegations contained in the indictment, between January 20 and 21, 2014, a conspirator filed fraudulent tax returns using the name and Social Security number of other individuals. Then, on February 6, 2014, the defendants drove to a Wells Fargo Bank in Pembroke Pines and Joseph attempted to withdraw cash from the ATM using a debit card encoded with an account number belonging to one of the tax return victims. The defendants then drove to a Citibank, located in Pembroke Pines, where Joseph made four withdrawals, totaling approximately $1,200.00, using a debit card encoded with an account number belonging to another one of the tax return victims.
At the time of their arrest, on February 6, 2014, the defendants had in their possession seventeen unauthorized debit cards, registered in the names of other persons.
The defendants are charged with access device fraud and aggravated identity theft.
Mr. Ferrer commends the efforts of IRS-CI, FBI, and the Pembroke Pines Police Department. This case is being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
39. United States v. Reyniel Cabrera Inurrieta, a/k/a “Anthony Smith,” a/k/a “Anthuan Smith,” Case No. 15-CR-20819-Cooke
On November 6, 2015, Reyniel Cabrera Inurrieta, 29, of Miami, was indicted for importing and attempting to possess with the intent to distribute a controlled substance, ethylone (“Molly”), into the United States from China.
According to the allegations contained in the previously filed criminal complaint, on October 21, 2015, Inurrieta attempted to pick up two parcels that had arrived at his P.O. Box in Miami, from China which he expected contained ethylone. At the time of his arrest, Inurrieta also possessed numerous counterfeit credit cards.
Mr. Ferrer commends the efforts of ICE-HSI, USSS, and MDPD. This case is being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
40. United States v. Marvin John Janvier, Case No. 15-20851-CR-Gayles
On November 3, 2015, Marvin John Janvier, 22, of Miami, was charged in a nine-count indictment for his participation in an identity theft tax fraud scheme.
According to the allegations contained in the indictment, between January 21, 2015 and April 25, 2015, Janvier caused to be filed over 170 fraudulent federal income tax returns, seeking refunds in excess of $100,000.
Janvier was charged with wire fraud, aggravated identity theft, and possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of IRS-CI, USSS, and NMBPD. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
41. United States v. Mike Patrick Guillaume, Case No.15-60288-CR-Bloom
On November 10, 2015, Mike Patrick Guillaume, 31, of Miramar, was charged by indictment for his participation in an identity theft scheme.
According to the allegations contained in the indictment, on or about December 4, 2014, the defendant possessed the Social Security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred, possessed and used the means of identification, specifically, the debit card account numbers of two individuals.
The indictment charges the defendant with use of unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Miramar Police Department and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
42. United States v. Ronel Junior Lamour, Case No.15-20882-CR-Gayles
On November 13, 2015, Ronel Junior Lamour, 25, of Miami, was charged in a 5-count indictment for a scheme to use stolen identities to file unauthorized tax returns, setup bank accounts with debit cards in the names of the tax filers, and then have the refunds wired to those accounts.
According to the allegations contained in the indictment, beginning on or about February 1, 2013, Lamour fraudulently used debit card account numbers issued to other persons to purchase United States Postal Service (USPS) money orders. On August 13, 2014 and January 2, 2014, Lamour deposited these USPS money orders into a bank account.
On March 18, 2014, pursuant to a warrant, federal law enforcement conducted an electronic search of Lamour’s cell phone. The search uncovered personal identifying information (“PII”) - including names, dates of birth, and social security numbers.
The investigation further revealed that Lamour used Social Security numbers issued to other persons to file unauthorized tax returns.
Lamour was charged with conspiracy to commit access device fraud, use of one or more unauthorized access devices, possession of fifteen or more unauthorized access devices and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Joshua S. Rothstein.
43. United States v. Sean Lyons, Case No. 15-60297-CR-Cohn
On November 17, 2015, Sean Lyons, 29, of Plantation, was charged in a five-count indictment for his participation in a stolen identity tax fraud scheme.
According to the allegations contained in the indictment, on May 28, 2014, Lyons possessed unauthorized prepaid debit cards registered to at least fifteen people. The indictment also alleges that Lyons transferred, possessed, or used the means of identification of four individuals in relation to that offense.
The indictment charges Lyons with possession of fifteen or more unauthorized access devices and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Plantation Police Department. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
If convicted of the charged conduct, the defendants face a possible maximum statutory sentence of 10 years in prison for possession of fifteen or more unauthorized access devices; 10 years in prison for trafficking in or using one or more unauthorized access devices during a one-year period and by such conduct obtaining anything of value over $1,000; 5 years in prison for theft of mail; 10 years in prison for theft of government money; 5 in prison for conspiracy to commit theft of government money; 5 years in prison for conspiracy to defraud the United States; 20 years in prison for participating in a wire fraud conspiracy; 5 years in prison for conspiracy to pass Treasury checks bearing forged endorsements; and 2 years in prison consecutive to any other term for aggravated identity theft.
A complaint or an indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
18 November 2015
West Suburban Drug Dealer Sentenced to 16 Years in Prison for Selling Dozens of Guns Later Used in Chicago ShootingsRead the Press Release
CHICAGO — A federal judge today sentenced a Lisle man to 16 years in prison for putting at least 80 firearms into the hands of known gang members on the streets of Chicago.
WALTER FREEMAN obtained the guns from a co-defendant, TIMOTHY VANA, in exchange for crack cocaine. Freeman later sold the guns to individuals he knew to be members of Chicago street gangs. Several of the guns were used in shootings and other crimes in and around Chicago.
Freeman, 36, of Lisle, pleaded guilty last year to one count of knowingly and intentionally distributing a controlled substance, and one count of knowingly possessing a firearm in furtherance of a drug trafficking crime. He also stipulated to being a felon in possession of a firearm in a charge that was filed in a separate indictment.
U.S. District Judge Sharon Johnson Coleman imposed the 16-year sentence in federal court in Chicago.
“Defendant’s possession and sale of at least 80 weapons directly contributed to the violence that our city faces,” Assistant U.S. Attorney Jennie Levin said in the government’s sentencing memorandum. “He has victimized the entire Chicago community.”
According to a written plea agreement, Freeman sold approximately seven grams of crack cocaine per week to a regular group of customers from 2008 to 2013. He also admitted selling crack cocaine to an undercover law enforcement agent on several occasions in 2011 and 2012.
Freeman obtained 40 guns from Vana between 1999 and 2001, and another 40 between 2010 and 2011. The guns included revolvers and semi-automatic weapons. Vana had stolen the guns from an avid firearms collector who resided at Vana’s family’s home in Bolingbrook.
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives later recovered many of the weapons after they had been involved in shootings and other crimes in and around Chicago. ATF agents traced the serial numbers of the guns and learned they had been purchased by the same owner, who resided in Vana’s family’s house. Further investigation revealed the drugs-for-guns arrangement between Vana and Freeman.
Vana, 54, of Forest Park, pleaded guilty last month to one count of being a felon in possession of a firearm, and one count of knowingly possessing a firearm that he had reasonable cause to believe was stolen. Vana’s sentencing hearing before U.S. District Judge Elaine E. Bucklo will be scheduled at a later date.
Freeman’s sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the ATF Chicago Field Division. The Cook County Sheriff’s Police and the Illinois State Police assisted in the investigation.
The government is represented by Ms. Levin.
Waldoboro Resident Pleads Guilty to Crack Conspiracy ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jeremy Ingersoll-Meserve, 38, of Waldoboro, Maine pleaded guilty today in U.S. District Court to conspiring to distribute and possess with the intent to distribute cocaine base, commonly known as, crack cocaine.
Between about January 2010 and August 2013, the defendant conspired with others to distribute over 280 grams of crack cocaine throughout the greater Bangor area. The drugs were obtained in the New Haven, Connecticut area and transported to the Bangor area by others. The defendant obtained the drugs from other conspirators and sold it for $100 per gram and $50 per half-gram.The defendant faces up to 20 years in prison, a $1,000,000 fine and supervised release of between three years and life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Drug Enforcement Agency; the Bureau of Alcohol, Tobacco, Firearms and Explosives (New Haven office); and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.VA Hospital Union Official Sentenced to Prison for Stealing from UnionRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced the former president of the federal employees union at Birmingham's Veterans Affairs Hospital to six months in prison, plus six months home detention for embezzling more than $92,000 from the local chapter. U.S. Attorney Joyce White Vance, U.S. Department of Veterans Affairs, Office of Inspector General, Special Agent in Charge Monty Stokes, and U.S. Department of Labor, Office of Labor-Management Standards, Investigator Hollis Lindley Jr. announced the sentence.
STEPHANIE HICKS, 44, of Birmingham, pleaded guilty in June to bank fraud and forgery. U.S. District Judge Karon O. Bowdre ordered Hicks to pay $92,000 in restitution to the American Federation of Government Employees, Local 2207, AFL-CIO, as part of her sentence. Hicks must report to prison Jan. 12.
Hicks was elected president of Local 2207 at the Birmingham VA Hospital in July 2007 and served until July 2013 when members elected a new president. The local collects dues biweekly from its more than 440 members. During Hicks' tenure, the local maintained the money in two bank accounts -- a general operating account and a legal fund account, first at Wachovia Bank and, following a merger, at Wells Fargo Bank, according to the indictment and Hick’s plea agreement with the government.
From at least Jan. 1, 2008 until July 26, 2013, Hicks schemed to defraud the banks, using her position as Local 2207 president to conduct unauthorized transactions taking money from the union's accounts to use for her personal benefit, according to the court records. Those transactions included writing checks to herself for travel that did not take place, forging the name of other Local 2207 officers and members on checks she wrote to herself, and making unauthorized debit card purchases and cash withdrawals, according to the records.
To conceal her fraud, Hicks did not maintain records of the financial transactions, as required by federal law and Local 2207's constitution and bylaws, nor did she seek approval for the expenditures.
Veterans Affairs, OIG, and the Department of Labor, OLMS and OIG, investigated the case, which Assistant U.S. Attorney Xavier O. Carter prosecuted.
United States Returns nearly $12 Million to Victims of Illegal Money-Transmitting Business called e-BullionRead the Press Release
LOS ANGELES – The United States has returned approximately $11.7 million in civilly forfeited fraud proceeds to more than 1,000 victims who invested or deposited money with e-Bullion.com, a website that operated for years as an illegal money-transmitting business.
The funds were disbursed to e-Bullion victims last week after federal prosecutors successfully obtained a civil forfeiture order against money and precious metals seized from the illegal money-transmitting business and its operator. The $11.7 million included bank funds and liquidated reserves of gold, silver and platinum seized from James Fayed and his companies – e-Bullion.com, Goldfinger Coin and Bullion (GCB) and Goldfinger Bullion Reserve Corp.
The recent disbursement of funds follows another distribution of funds in December 2014, when $1.8 million in civilly forfeited funds was returned to over 300 victims who invested in an illegal scheme operated under “Kum Ventures” that was run through e-Bullion.
e-Bullion purported to provide opportunities to invest in precious metals. Through the e-Bullion.com website, individuals opened accounts with real money, which they used to purchase virtual “e-currency” purportedly backed by precious metal reserves maintained by Fayed’s companies in the United States and Australia. e-Bullion accountholders could then trade their e-currency with others on the website. While there were no fees associated with establishing or funding an account on the e-Bullion website, there were fees associated with changing e-currency back into real money.
In practice, e-Bullion allowed individuals engaging in fraud to move money around the world while remaining virtually anonymous and avoiding many international banking reporting requirements. An investigation into e-Bullion and GCB by the Federal Bureau of Investigation and IRS Criminal Investigation revealed that operators of fraudulent “high-yield investment programs” and other illegal investment schemes used e-Bullion to collect millions of dollars of e-currency from victims, much of which was wire transferred by GCB to overseas accounts. The asset forfeiture case prosecuted by the United States Attorney’s office alleged that Fayed and his companies not only allowed these illegal schemes to use e-Bullion to operate – collecting substantial fees when the fraudsters cashed out – but also profited by retaining monies abandoned by fraudsters who believed they were under investigation by law enforcement or were about to be caught.
“e-Currency is not beyond the reach of the law,” said United States Attorney Eileen M. Decker. “The Department of Justice has recouped and will continue to recoup criminal proceeds for crime victims in the digital age.”
During the course of the criminal investigation into e-Bullion, James Fayed hired hitmen to murder his wife and business partner, Pamela Fayed. James Fayed subsequently was prosecuted by the Los Angeles County District Attorney’s Office and sentenced to death following the separate investigation by the Los Angeles Police Department.
The United States obtained information from e-Bullion’s and GCB’s encrypted computer servers in Switzerland, and that information was used to identify e-Bullion accountholders and the value of their individual accounts. Last week, Analytics Consulting LLC, the claims administration company retained by the United States Department of Justice, distributed the forfeited funds to the innocent accountholders through a process known as “remission,” which allows the government to use forfeited monies to compensate domestic and international victims of crime. The e-Bullion victims resided in several countries, including the United States, Australia and Canada.
The United States Attorney’s Office, the Federal Bureau of Investigation and IRS Criminal Investigation, with the assistance and cooperation of the Australian Federal Police and Australian prosecutors, also secured the forfeiture of approximately $12 million in precious metals held by Fayed and his companies in Perth, Australia. Efforts to repatriate the Australian proceeds for distribution to the e-Bullion victims are ongoing.
United States Joins Lawsuit Alleging That Inchcape Shipping Services Overcharged the United States Navy for Ship Husbanding ServicesRead the Press Release
The government announced today that it has joined a lawsuit alleging that Inchcape Shipping Services Holdings Limited and certain of its subsidiaries (collectively, Inchcape) violated the False Claims Act by knowingly overbilling the U.S. Navy for ship husbanding services from years 2005 to 2014. Inchcape is a marine services contractor headquartered in the United Kingdom.
As a ship husbanding services provider, Inchcape arranged for the provision of goods and services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico. Inchcape’s services typically included the provision of food and other subsistence items, arrangement of local transportation, waste removal, telephone services, ship-to-shore transportation and force protection services. The lawsuit, which was unsealed today, alleges that Inchcape knowingly overbilled the Navy by submitting invoices that overstated the quantity of goods and services provided, billed at rates in excess of applicable contract rates and double-billed for certain goods and services.
“Those who contract with the federal government and accept taxpayer dollars must follow the rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will not tolerate contractors who submit false claims to defraud the armed forces or any other agency of the United States.”
“Ensuring that federal contractors deliver the goods and services at the agreed upon prices in return for receiving the taxpayers’ money is a priority for the U.S. Attorney’s Office,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “This lawsuit reflects our commitment to combat fraud against federal government agencies.”
“The Department of the Navy continues to hold contractors accountable for the agreements they have made to supply our fleet,” said Captain Amy Derrick, a senior spokeswoman for the Department of the Navy. “We also continue to expect strict adherence to higher standards within the Department and expect the same from industry.”
The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act by three former employees of Inchcape, Noah Rudolph, Andrea Ford and Lawrence Cosgriff. Under the act, a private citizen may bring suit on behalf of the United States and share in any recovery. The government may intervene in the case, as it has done here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it.
The case is being handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the District of Columbia, with assistance from the Department of the Navy and the Naval Criminal Investigative Service.
The case is captioned United States ex rel. Rudolph v. Inchcape Shipping Services Holdings Limited, et al., No. 1:10-cv-01109 (D.D.C). The claims alleged in the case are allegations only, and there has been no determination of liability.
United States Attorney Charges Two Men with Sex TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a federal grand jury returned an indictment charging Gary Delima, 26, and Sharif Cargo, 26, both of Brooklyn, New York, with Sex Trafficking by Force and Coercion, Coercion and Enticement to Engage in Prostitution, and Transportation for Prostitution. Delima was also charged with the Sex Trafficking of a Child.
Delima, Cargo, and others had been federally indicted on March 18, 2015, on charges related to the distribution of heroin and cocaine base in Vermont. Today, a federal grand jury in Burlington returned a Third Superseding Indictment, adding the new charges related to human trafficking. Specifically, Delima and Cargo are accused of recruiting, enticing, and maintaining two individuals referred to in the indictment as “Victim 1” and “Victim 2,” and using force, threats of force, fraud, and coercion to cause them to engage in commercial sex acts between September 2012 and September 2013. Delima and Cargo are further accused of inducing and enticing “Victim 1” to travel from Vermont to New York in February 2013 to engage in prostitution, and transporting “Victim 1” from Vermont to New York in February 2013 to engage in prostitution. Delima is also charged with transporting an individual referred to as “Victim 3,” a minor, to engage in prostitution in January 2015.
According to an affidavit in support of a search warrant application submitted on November 16, 2015, law enforcement responded to a South Burlington motel in July 2013, and encountered Sharif Cargo, Gary Delima, and two women. Inside the motel room, law enforcement discovered Cargo, Delima, and the women, as well as evidence of prostitution and narcotics activity. Law enforcement also discovered that at least one of the women had been advertised earlier that day on the website “Backpage.com” as an escort available in the South Burlington area. Additional records from Backpage.com revealed that Sharif Cargo’s email address was used to post similar advertisements on the website between August 2012 and August 2013.
According to the same affidavit, law enforcement again responded to a South Burlington motel in February 2015 and encountered two females who admitted to being engaged in prostitution. One of the females was a minor. The females identified Gary Delima as the man who transported them from New York to Vermont for the purposes of having the females engage in prostitution.
If convicted, Cargo and Delima face a mandatory minimum of 15 years of imprisonment, and up to a maximum of life imprisonment for Sex Trafficking by Force and Coercion. Delima faces a mandatory minimum of 10 years of imprisonment, and up to life imprisonment, for the Sex Trafficking of a Child. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty.
United States Attorney Eric S. Miller commended the investigative efforts of the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the South Burlington Police Department; and the Burlington Police Department.
Miller also stated, “Earlier this month, my office released a public service announcement intended to raise awareness surrounding the dangerous intersection of drug and sex trafficking in Vermont and to put victims and potential victims in touch with the services they need. Today, we have filed charges against two men alleged to have trafficked both drugs and young women. We will win the fight against human trafficking through this targeted combination of education, treatment, and vigorous law enforcement.”
The United States is represented in this matter by Assistant U.S. Attorneys Abigail Averbach and Jonathan Ophardt. Sharif Cargo is represented by Thomas J. Sherrer, Esq. Gary Delima is represented by Brooks G. McArthur, Esq. and David J. Williams, Esq.
U.S. Joins Lawsuit Alleging that Inchcape Shipping Services Overcharged the United States Navy for Ship Husbanding ServicesRead the Press Release
WASHINGTON – The government announced today that it has joined a lawsuit alleging that Inchcape Shipping Services Holdings Limited and certain of its subsidiaries (collectively, Inchcape) violated the False Claims Act by knowingly overbilling the U.S. Navy for ship husbanding services from years 2005 to 2014. Inchcape is a marine services contractor headquartered in the United Kingdom.
As a ship husbanding services provider, Inchcape arranged for the provision of goods and services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico. Inchcape’s services typically included the provision of food and other subsistence items, arrangement of local transportation, waste removal, telephone services, ship-to-shore transportation and force protection services. The lawsuit, which was unsealed today, alleges that Inchcape knowingly overbilled the Navy by submitting invoices that overstated the quantity of goods and services provided, billed at rates in excess of applicable contract rates and double-billed for certain goods and services.
“Those who contract with the federal government and accept taxpayer dollars must follow the rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will not tolerate contractors who submit false claims to defraud the armed forces or any other agency of the United States.”
“Ensuring that federal contractors deliver the goods and services at the agreed upon prices in return for receiving the taxpayers’ money is a priority for the U.S. Attorney’s Office,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “This lawsuit reflects our commitment to combat fraud against federal government agencies.”
“The Department of the Navy continues to hold contractors accountable for the agreements they have made to supply our fleet,” said Captain Amy Derrick, a senior spokeswoman for the Department of the Navy. “We also continue to expect strict adherence to higher standards within the Department and expect the same from industry.”
The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act by three former employees of Inchcape, Noah Rudolph, Andrea Ford and Lawrence Cosgriff. Under the act, a private citizen may bring suit on behalf of the United States and share in any recovery. The government may intervene in the case, as it has done here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it.
The case is being handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the District of Columbia, with assistance from the Department of the Navy and the Naval Criminal Investigative Service.
The case is captioned United States ex rel. Rudolph v. Inchcape Shipping Services Holdings Limited, et al., No. 1:10-cv-01109 (D.D.C). The claims alleged in the case are allegations only, and there has been no determination of liability.
U.S. Attorney’s Office Files Civil Lawsuit Against New Jersey Couple and Two Diagnostic Companies for Falsifying Diagnostic Test Reports and Failing to Properly Supervise TestsRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman announced today that the government has intervened in a False Claims Act lawsuit and filed a complaint against a Morris County, New Jersey, couple and their diagnostic imaging companies for knowingly submitting false claims to Medicare for thousands of falsified diagnostic test reports and the underlying tests.
Nita K. Patel, 53, and Kirtish N. Patel, 53, both of Rockaway, New Jersey, owners and operators of Biosound Medical Services Inc. and Heart Solution PC of Parsippany, New Jersey, each pleaded guilty Nov. 17, 2015, to informations charging them with health care fraud related to this conduct.
The civil complaint alleges that defendants created fraudulent diagnostic test reports, forged physician signatures on these reports, and then billed Medicare for the fraudulent reports and the underlying tests that were used solely to create these reports. The complaint alleges that defendants billed Medicare for neurological tests that they conducted without the required physician supervision. The complaint also alleges that defendants knowingly submitted false claims for neurological tests conducted without physician supervision.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the filing of today’s complaint.
The government is represented by Assistant U.S. Attorney Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
The case is captioned U.S. ex rel. Jane Doe v. Heart Solution, PC, et al., No. 14-3644 (D.N.J.).
Defense counsel:
Kirtish Patel: Anthony Fusco, Jr., Esq., Passaic, New Jersey
Nita Patel: Frank Arleo, Esq., West Orange, New Jersey
Counsel for Relator:
Timothy J. McInnis, Esq., New York, New York
U.S. Attorney's Office to Review City and Suburban Restaurants for Compliance with Americans with Disabilities ActRead the Press Release
CHICAGO — The United States Attorney’s Office in Chicago has launched a review of restaurants in the city and suburbs to ensure compliance with the Americans with Disabilities Act, authorities announced today.
The purpose of the review is to ensure that the restaurants are accessible to persons with disabilities. The initiative is undertaken in accordance with the congressionally-mandated responsibility to review compliance with the ADA. The U.S. Attorney’s Office hopes to work cooperatively with restaurant owners who are found to be non-compliant.
“The Americans with Disabilities Act is an important civil rights law,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “Restaurant owners must conform to its accessibility provisions, and we will pursue all reasonable measures to ensure compliance.”
This year marks the 25th anniversary of the passage of the ADA. The Act prohibits discrimination on the basis of disability in places of public accommodation, including restaurants, and requires such places to be “designed, constructed, and altered in compliance with the accessibility standards” established by the ADA’s implementing regulations.
As part of the program, an initial selection of restaurant owners in Chicago and the suburbs will be asked to complete a survey pertaining to their restaurant’s accessibility. Federal investigators may then conduct on-site inspections of the facilities to confirm survey responses and to evaluate compliance with ADA regulations. The initial round of surveys is being sent to the restaurants today.
Non-compliant owners and operators will initially have the option to voluntarily agree to upgrade their facilities to meet ADA requirements. However, owners and operators found to be engaging in a pattern or practice of discrimination – and those who fail to enter voluntary compliance agreements – may face a civil lawsuit and be subject to monetary penalties and civil fines.
Additional information about the ADA can be found at www.ada.gov, or by calling the toll-free information line at the Civil Rights Division of the Justice Department at (800) 514-0301 (voice) or (800) 514-0383 (TTY).
Two Men Charged with Distribution of HeroinRead the Press Release
Michael Hernandez, a/k/a “Jimmy,” 31, and Santo Rondo, 45, both citizens of the Dominican Republic, were charged today by indictment with distribution of 100 grams or more of heroin in Philadelphia, announced United States Attorney Zane David Memeger. Hernandez and Rondo are charged with distributing more than 100 grams of heroin. Hernandez is also charged with distribution of more than 100 grams of heroin, possession with intent to distribute more than 100 grams of heroin, possession of a firearm in furtherance of a drug trafficking felony and possession of a firearm by a convicted felon.
According to the indictment, on July 30, 2015, Michael Hernandez distributed approximately 157 grams of heroin in Philadelphia, Pennsylvania. It is further charged that on August 12, 2015, Hernandez and Santo Rondo distributed approximately 200 grams of heroin in Philadelphia. The indictment further charges that on August 13, 2015, Michael Hernandez possessed with intent to distribute approximately 600 grams of heroin in Philadelphia, and that he also possessed a loaded .40 caliber Smith & Wesson semi-automatic pistol in furtherance of a drug trafficking offense for which he could be charged federally, as well as for possession of a firearm by a convicted felon.
If convicted, Michael Hernandez faces a statutory maximum sentence of life in prison with a mandatory minimum term of 10 years, up to a lifetime of supervised release, a possible fine, and a $500 special assessment. Santo Rondo faces a statutory maximum sentence of 40 years in prison with a mandatory minimum term of five years, up to a lifetime of supervised release, a possible fine, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Tulsa Woman Sentenced to 15 Months for Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CHELBI GEORGE, age 42, of Tulsa, Oklahoma, was sentenced to 15 months imprisonment for POSSESSION OF A COUNTERFEIT OBLIGATION, in violation of Title 18, United States Code, Section 472.
The charge arose from an investigation by the Muskogee Police Department and the United States Secret Service.
The Indictment alleges that on or about May 5, 2015, in the Eastern District of Oklahoma, the defendant, CHELBI GEORGE, did with intent to defraud, possess counterfeit obligations of the United States.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Tulsa Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOSHUA JOHN KILLBLANE, age 33, of Tulsa, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleged that on or about May 21, 2015, in the Eastern District of Oklahoma, the Defendant, JOSHUA JOHN KILLBLANE, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department, the Bureau of Alcohol, Tobacco and Firearms and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kristin Harrington represented the United States.
Topeka Man Sentenced to 12+ Years for Distributing Child PornographyRead the Press Release
TOPEKA, KAN. – A Topeka man who used the screen name “kansas_dad” in chat rooms was sentenced Wednesday to 150 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Tucker J. Newman, 48, Topeka, Kan., pleaded guilty to one count of distributing child pornography. In his plea he admitted he sent child pornography to an undercover investigator in California. During an online conversation in January 2014, Newman asked the investigator to send him video of a child being sexually abused. In trade, Newman sent the investigator child pornography. When investigators served a search warrant at Newman’s home in Topeka, they found 64 child pornography video files on a DVD-R. Most of the videos showed adult men engaging in sex acts with children younger than 10 years of age.
Grissom commended the Topeka Police Department, Homeland Security Investigations and Assistant U.S. Attorney Christine Kenney for their work on the case.
Topeka Jewelry Store Owner Sentenced for Purchasing Stolen JewelryRead the Press Release
TOPEKA, KAN. - The owner of a Topeka jewelry store was sentenced Wednesday to a year and a day in federal prison for knowingly buying jewelry that had been stolen in home invasions, U.S. Attorney Barry Grissom said.
In June, John O. Dasher, 54, Silver Lake, Kan., pleaded guilty in U.S. District Court in Topeka to one count of transporting stolen goods. In his plea, he admitted the crimes occurred from 2010 to 2013 while he owned The Diamond House, 1801 S.W. Gage in Topeka. He knowingly purchased stolen jewelry taken in home invasions.
Dasher paid a fraction of the actual value of the jewelry, which he melted down to form scrap gold. He mailed the gold scrap via the U.S. Postal Service to gold wholesalers Pop Gems International, Gold Empire and Coinex, Inc., in Los Angeles, Calif.
As part of his plea, Dasher agreed to a forfeiture money judgment of $130,000
Grissom commended the Topeka Police Department, the FBI, the Shawnee County District Attorney’s Office and Assistant U.S. Attorney Jared Maag for their work on the case.
Three Arrested on Charges of Conspiracy to Distribute HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Wilson Santiago, 35, of Hartford, CT, Jose Pagan, 37, of Hartford, CT, and Samantha Partlow, 29, of Barre, VT, made initial appearances today in the United States District Court in Burlington, following their arrests for conspiracy to distribute heroin. U.S. Magistrate Judge John M. Conroy temporarily detained all three people. Their detention hearings are set for next week.
According to court documents, in the spring of 2015, the ATF began an investigation into Samantha Partlow. ATF had received information that Partlow was selling heroin and crack cocaine from her apartment at 100 Summer Street in Barre and that her drug suppliers were people from the Hartford, CT area. In October and November 2015, the ATF used a confidential informant to conduct three controlled buys of heroin from Partlow at Partlow’s apartment on Summer Street. On November 17, 2015, ATF executed a search warrant at Partlow’s residence. As the ATF approached the residence, a person from inside the apartment, later identified as Wilson Santiago, threw a package of crack out one of the windows of Partlow’s apartment. Inside the residence, ATF found heroin, along with a scale and other paraphernalia used to package drugs. Santiago and Pagan (who was also inside the house during the search) were identified as two of the men from Hartford, CT, who were supplying Partlow with heroin and crack.
The United States Attorney, Eric S. Miller, emphasized that the charge against Santiago, Pagan and Partlow is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face up to twenty years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Santiago is represented by Craig Nolan, Esq. Pagan is represented by the Federal Public Defenders Office. Partlow is represented by Richard Bothfeld, Esq. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
Terry Resident Indicted for Aiming Laser Pointer at AricraftRead the Press Release
Jackson, Miss - Landon Albritton, age 20, of Terry, Mississippi, has been charged in a federal indictment with knowingly aiming the beam of a laser pointer at an aircraft or its flight path in the special aircraft jurisdiction of the United States, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Donald Alway with the Federal Bureau of Investigation in Mississippi.
According to the indictment in this case, the incident occurred on August 6, 2015. Albritton was arraigned today before U.S. Magistrate Judge Linda R. Anderson. The case is scheduled for trial before U.S. District Judge Henry T. Wingate on January 4, 2016. If convicted, he faces a maximum penalty of five years in prison and a $250,000 fine.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering crew members, passengers and people on the ground. If you have information about a lasing incident or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
The public is reminded that a criminal indictment is a formal charge against a defendant. It is merely an accusation and a defendant is presumed innocent until proven guilty in a court of law.
Tahlequah Man Sentenced to 36 Months Probation for Providing Contraband in PrisonRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that NATHAN LEON STANLEY BENALLY-SAM, age 21, of Tahlequah, Oklahoma, was sentenced to 3 years of probation for PROVIDING CONTRABAND IN PRISON, in violation of Title 18, United States Code, Section 1791(a)(1).
The charge is a result of an investigation by the Muskogee County Sheriff’s Department and the United States Marshal Service. The defendant was indicted in June, 2015 and pled guilty in July, 2015.
The Indictment alleged that on or about February 5, 2015, in the Eastern District of Oklahoma, the Defendant, NATHAN LEON STANLEY BENALLY-SAM, did knowingly and intentionally attempt to provide marijuana, to an inmate in a prison.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
First Assistant United States Attorney Doug Horn represented the United States.
Stephens City Woman Sentenced for Role in Fatal OverdoseRead the Press Release
HARRISONBURG, VIRGINIA – A Stephens City, Virginia woman, who previously admitted to selling heroin that led to a fatal overdose in March 2014, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.
Brandy Dawn Kelly, 37, of Stephens City, Va., previously pled guilty to one count of distribution of heroin to victim R.F.L. Today in District Court, Kelly was sentenced to nine years of federal incarceration and four years of supervised release thereafter.
“This case is another example of the trail of pain and sorrow that the heroin epidemic has cut across Virginia and the nation,” United States Attorney Anthony P. Giorno said today. “The only way this epidemic can be curbed is through a combination of prevention, treatment and prosecution. It is only through a comprehensive approach that we can achieve real change.”
According to evidence presented at pervious hearings by Assistant United States Attorney Elizabeth G. Wright, Kelly admitted to buying heroin from Scott Pierce, who previously traveled to Baltimore, Maryland and purchased that heroin from Christopher Giles. Kelly set the price, arranged the transaction and met with the victim, R.F.L. on March 19-20, 2014. R.F.L. used the heroin purchased from Kelly, overdosed and died as a result. Pierce and Giles have both been charged federally for their roles in the overdose death.
The investigation of these cases was conducted by the Drug Enforcement Administration and the Northwest Virginia Regional Drug Task Force. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg, and the Virginia State Police. Assistant United States Attorney Elizabeth G. Wright prosecuted the cases for the United States.
St. Petersburg Woman Sentenced to Nine Years for Conspiracy to Possess and Distribute CocaineRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Nicole Caudill (28, St. Petersburg) to nine years in federal prison for conspiracy to possess and distribute crack and powder cocaine. She pleaded guilty on December 29, 2014.
According to court documents, from March 2013 to October 2014, Caudill and a another individual sold a variety of illegal narcotics, including crack and powder cocaine, to a confidential informant. A search warrant executed at her residence revealed, among other items, two firearms, crack and powder cocaine, and prescription pills. Law enforcement officers also seized more than $100,000 in unlawful drug proceeds (in the form of cash and jewelry) from various safe deposit boxes belonging to Caudill and a co-conspirator.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Rachel Jones.
St. Croix Man Arrested for Possessing a Firearm and AmmunitionRead the Press Release
St. Croix, USVI – Curtis Winston Venner, 34, of St. Croix, was arrested today on a criminal complaint charging him with possession of a firearm by convicted felon, possession of ammunition by a convicted felon, unauthorized possession of a firearm, and unauthorized possession of ammunition, United States Attorney Ronald W. Sharpe announced today. Venner made his initial appearance before U.S. Magistrate Judge George Cannon in District Court and was ordered detained pending a hearing scheduled for November 23, 2015 at 9:00 a.m.
According to the complaint, Venner was the driver and sole occupant of a vehicle that was stopped on Rattan Road on July 12, 2015. Inside the vehicle, next to Venner on the floor of the front passenger seat, law enforcement found a bag containing a Cobray, model M 12, .380 caliber handgun and a magazine containing 17 bullets.
If convicted of possessing a firearm and/or ammunition by a convicted felon, Venner faces a maximum sentence of 10 years’ imprisonment and a $250,000.00 fine for each count. If convicted of unauthorized possession of a firearm, Venner faces a mandatory minimum sentence of one year imprisonment and a maximum of five years. If convicted of unauthorized possession of ammunition, Venner faces a maximum sentence of seven years’ imprisonment.
The complaint is the result of investigative work conducted by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Rami. S. Badawy.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Seven Defendants Arrested for Narcotics Trafficking in the Far Rockaway Neighborhood of Queens, New YorkRead the Press Release
A twelve-count indictment was unsealed today in the United States District Court in Brooklyn charging seven defendants with crimes including conspiracy to distribute of heroin, crack cocaine, powder cocaine and marijuana, use and possession of firearms in furtherance of a drug crime, and firearms trafficking. The defendants were arraigned today before United States Magistrate Judge Robert M. Levy, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges and arrests were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Delano A. Reid, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF); William J. Bratton, Commissioner, New York City Police Department (NYPD) and Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD).
In response to rising violence in the area, the FBI, ATF, NYPD and NCPD conducted a joint investigation resulting in today’s charges against members of a Far Rockaway-based narcotics and firearms trafficking organization. As detailed in the detention memorandum filed today by the government, during the course of the investigation law enforcement agents monitored a court-ordered wiretap on a cellular telephone used by a leader of the organization which documented the defendants’ distribution of heroin and other narcotics. In one call, organization members discussed packaging a quantity of heroin for resale representing more than 1,500 individual doses with a retail value of more than $15,000. As part of the investigation, law enforcement agents and officers purchased from the defendants heroin representing some 2,500 individual doses and more than a dozen firearms, including two assault rifles. Today, in conjunction with the arrests, agents executed search warrants at three locations in Far Rockaway resulting in the seizure of heroin, firearms, scales and other narcotics paraphernalia.
The intercepted telephone calls also demonstrate the organization’s possession and sale of firearms and willingness to resort to violence to resolve drug disputes. For example, in a call intercepted on September 29, 2015, between a coconspirator and a narcotics customer, the customer recounted a previous incident in which the defendant Jose Perez threatened to shoot the customer over money owed to the organization. The coconspirator told the customer “I know he pulled a gun, but you played yourself, that’s why. . . . He did that because you owed me money. That’s why I told him not to shoot you.” In a call intercepted on September 30, 2015, in which defendant Jose Crespo and a coconspirator discussed their concerns about law enforcement activity in the area, Crespo confirmed that defendant Jermaine Stephenson was holding the organization’s firearms. Stephenson’s role as the holder of the organization’s firearms was corroborated in a separate recording made by a cooperating witness on September 11, 2015, in which a coconspirator described Stephenson as the organization’s “holster.” Most recently, in a recording made by a cooperating witness on November 11, 2015, a coconspirator informed the cooperating witness that he keeps a firearm “on standby” at his house and would be willing to use it to resolve a dispute the cooperating witness claimed to be having.
“This prosecution deals a fatal blow to a group allegedly responsible for funneling illegal guns and drugs into Far Rockaway,” stated United States Attorney Capers. “We are committed to dismantling such criminal organizations and removing the scourge of illegal guns and drugs – and the violence that ensues – from our neighborhoods and making our communities safe for their residents.”
FBI Assistant Director-in-Charge Rodriguez stated, “Engaging in the illegal distribution of firearms and drugs is an extremely dangerous combination, one that promotes violent activity and degrades the core of our communities. The defendants’ alleged actions highlight the looming danger that’s imminent when criminals bring guns and drugs into our neighborhoods. The FBI will continue to aggressively investigate these cases, work with our partners to disrupt and dismantle such activity, and minimize the threat these criminals pose to the innocent members of our community.”
ATF Special Agent-in-Charge Reid stated, “Just as important as making these arrests and virtually dismantling this alleged criminal organization is the fact that the ATF and its law enforcement partners have drastically improved the quality of life in the Far Rockaway area. I am extremely thankful for the inter agency cooperation during the course of this investigation and am confident that the prosecution of these defendants will be swift and comprehensive. This group’s days of illegally dealing in heroin have come to an end.”
“Today’s arrests and indictments are the result of the coordinated efforts of law enforcement to stop the flow of illegal firearms and narcotics into Far Rockaway. I commend the hard work of the investigators involved in the case whose efforts resulted in these individuals being brought to justice,” said NYPD Commissioner Bratton.
“Crime has no boundaries and this case is an example of how partners in law enforcement utilized talented personnel and resources to bring these seven defendants to justice,” said Acting NCPD Police Commissioner Krumpter. “Today’s arrests should serve as a deterrent to criminals as we at the Nassau County Police Department are committed to working with our fellow law enforcement partners to ensure public safety.”
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the most serious offense, six of the defendants face maximum sentences of life imprisonment, and one defendant faces up to 20 years of imprisonment.
The government’s case is being prosecuted by The Office’s Organized Crime & Gangs Section. Assistant United States Attorney Kevin Trowel is in charge of the prosecution.
The Defendants:
JOSE CRESPO, also known as “Santana” and “San”
Age: 54
Bronx, NYRAY JOHNSON, also known as “Moreno” and “Spoon”
Age: 30
Queens, NYJERMAINE STEPHENSON, also known as “Half”
Age: 34
Queens, NYJOSE PEREZ
Age: 39
Queens, NYISMAEL DEVALLE, also known as “Ish”
Age: 40
Queens, NYMIRIAM GAITHER
Age: 34
Queens, NYGRACE JAEN, also known as “Gracie” and “Graciela”
Age: 31
Queens, NYSandusky man charged for false billing schemeRead the Press Release
A Sandusky man was charged with wire fraud and conspiracy to commit wire fraud related to a billing scheme to defraud his employer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony K. Jones, 59, worked at Kyklos Bearing International LLC (KBI), where he had authority to make purchases for KBI using an acquisition credit card and the company’s purchase order process. Scott C. Wagner was the owner of Construction Equipment and Supply (CES), which sold and rented industrial machinery, according to the criminal information.
Beginning in 2001 and continuing through 2013, Wagner submitted invoices to Jones for goods that were never delivered and purchases of goods far in excess of what was actually delivered. Jones in turn arranged for KBI to pay the invoices, according to the information.
Wagner made large sums of money through the false billing scheme and compensated Jones with cash kickbacks, according to the information
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Sandusky, Ohio, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
San Francisco Tax Preparer Indicted for Wire Fraud, Money LaunderingRead the Press Release
SAN FRANCISCO - A federal grand jury indicted Cary S. Collins on charges of wire fraud, money laundering, and preparing a false tax return, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the indictment, unsealed today, Collins, 53, of San Francisco, is alleged to have engaged in a scheme to defraud clients of more than $1.3 million, and used those funds for personal expenditures. For this scheme, the indictment alleges four counts each of wire fraud, in violation of 18 U.S.C. § 1343, and money laundering, in violation of 18 U.S.C. § 1957. The indictment also alleges that Collins assisted in preparing a false tax return for a client, in violation of 26 U.S.C. § 7206(2).
Collins was arrested at his San Francisco home and made his initial appearance in federal court in San Francisco on November 18, 2015. The Honorable Laurel Beeler, U.S. Magistrate Judge, ordered Collins released on a $250,000 secured bond. Collins’ next scheduled appearance is at 2:30 p.m. on December 8, 2015, for an initial appearance before the Honorable Richard Seeborg, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of wire fraud, the defendant faces a maximum sentence per count of 20 years’ imprisonment, a $250,000 fine, 3 years of supervised release, a $100 special assessment, restitution, and criminal forfeiture. If convicted of money laundering, the defendant faces a maximum sentence per count of 10 years’ imprisonment, a $250,000 fine, 3 years of supervised release, a $100 special assessment, restitution, and criminal forfeiture. If convicted of assisting in the preparation of a false tax return, the defendant faces a maximum sentence of 3 years’ imprisonment, a $100,000 fine; 3 years of supervised release, a $100 special assessment, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Hartley M. K. West is prosecuting the case with the assistance of Hayden Leadford and Trina Khadoo. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Prior Felon from Artesia Sentenced to Ten Years in Prison for Violating Federal Narcotics and Firearms LawsRead the Press Release
ALBUQUERQUE – Enrique Hernandez, 44, of Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison for his conviction on federal firearms and methamphetamine trafficking charges. Hernandez will be on supervised release for five years following his term of incarceration.
Hernandez was arrested on June 5, 2014, by the DEA and the HIDTA Region VI Pecos Valley Drug Task Force (PVDTF) based on a criminal complaint charging him with violating the federal firearms and narcotics laws in Eddy County, N.M. According to the criminal complaint, Hernandez distributed approximately 20.9 grams of methamphetamine to an individual who was working with law enforcement in Artesia on April 16, 2014 and June 4, 2014.
Court filings also reflect that the DEA and PVDTF found approximately 293 grams of methamphetamine, drug paraphernalia, firearms, ammunition and $1,908.00 in cash during the execution of a search warrant on Hernandez’s place of business. At the time Hernandez was prohibited from possessing firearms and ammunition because he previously had been convicted of possession of methamphetamine with intent to distribute.
On Oct. 17, 2014, Hernandez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and being a felon in possession of firearms and ammunition. Hernandez admitted possessing ten ounces of methamphetamine and several firearms and ammunition in Eddy County on June 5, 2014. In entering the guilty plea, Hernandez admitted that he intended to provide the methamphetamine to another individual and that he knew it was illegal for him to possess firearms and ammunition because of his status as a convicted felon.
This case was investigated by the Las Cruces office of the DEA and the HITDA Region VI Pecos Valley Drug Task Force and was prosecuted by Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office.
The HITDA Region VI Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, New Mexico Probation and Parole, and the 5th Judicial District Attorney’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
President of Local Defense Contractor Sentenced to One Year and a Day in Federal Prison for Bribery ConspiracyRead the Press Release
Oklahoma City, Oklahoma – CHRISTOPHER HOUSTON HENSLEY, 57, of Yukon, Oklahoma, was sentenced today to serve one year and one day in federal prison for his role in a conspiracy to bribe a public official at the Corpus Christi Army Depot, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Hensley is the founder and president of Aerochem, Inc., based in Oklahoma City. Aerochem manufactures paint remover ("depaint") products, and it sold these products to Tinker Air Force Base ("Tinker") and other military bases for several years. On June 9, 2015, Hensley was charged by information with conspiracy to bribe a public official at the Corpus Christi Army Depot ("CCAD") in Corpus Christi, Texas. The information alleged that Aerochem started selling paint remover products in 2010 to CCAD. According to the information, Hensley and Soney E. Beesley, a former Aerochem officer, developed a relationship at CCAD with Richard Balderas, Jr., a supervisor of a CCAD division that stripped paint off military helicopter parts. The information alleged that Hensley and Beesley provided entertainment, $5,000 in wire transfers, and more than $3,000 in cash to Balderas in exchange for his favorable treatment of Aerochem’s business interests at CCAD. At a plea hearing on June 23, 2015, Hensley admitted that he approved of Beesley taking Balderas out to gentlemen’s clubs in Corpus Christi and using Aerochem money to buy a $2,600 football helmet for the football team of Balderas’ son.
Today, United States District Judge Joe Heaton sentenced Hensley to one year and one day in federal prison. Judge Heaton ruled that Hensley was responsible for bribery payments by Aerochem to officials at Tinker and CCAD. Judge Heaton ordered Hensley to pay $24,316.06 in restitution to the U.S. Department of Defense, to forfeit an additional $24,316.06 to the federal government as criminal proceeds, and to pay a fine of $25,000. Following his term of imprisonment, Hensley must serve three years of supervised release. Judge Heaton ordered Hensley to report on January 4, 2016, to a facility designated by the Bureau of Prisons.
Hensley is the fourth defendant to plead guilty and to be sentenced for an Aerochem bribery scheme involving Tinker and CCAD. In October 2013, SHELVIE RAYMOND TABB, 51, of Canadian, Oklahoma, pled guilty to accepting cash from an Aerochem employee in exchange for Tabb’s favorable treatment of Aerochem’s business interests in federal contracting. Tabb is a former depaint section chief at Tinker. In February 2014, SONEY E. BEESLEY, 41, of Oklahoma City, plead guilty to offering a bribe to a public official. Beesley admitted at a plea hearing that he made cash payments to Tabb in exchange for Tabb’s favorable treatment of Aerochem’s interests in federal contracts at Tinker. In June 2014, RICHARD BALDERAS, JR., 47, of Ingleside, Texas, pled guilty to accepting a bribe as a public official. At a plea hearing, Balderas admitted that as a CCAD supervisor, he helped to decide when CCAD needed to replace its paint stripper. Balderas further admitted that in 2011 and 2012, he accepted cash from Beesley on behalf of Aerochem, and Beesley represented that the cash payments were based on how much paint stripper CCAD bought from Aerochem. In August 2015, Judge Heaton sentenced Tabb, Beesley, and Balderas each to a term of 36 months’ probation. Beesley was also ordered to serve 30 days of home confinement and to pay a fine of $30,000.
These cases are the result of an investigation by the U.S. Air Force Office of Special Investigations, Federal Bureau of Investigation, and U.S. Army Criminal Investigation Command. The case was prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Reference is made to court filings for further information.
Portland Man Pleads Guilty to Embezzlement and Making False Entries in Credit Union RecordsRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that John C. Barry, 69, of Portland, pled guilty today in U.S. District Court to embezzlement and making false entries in credit union records.
According to court records, the defendant was the manager of the Portland Police Department Federal Credit Union (“PPDFCU”), a federal credit union whose deposits were federally insured. In that capacity, the defendant had access to PPDFCU bank accounts and was responsible for managing the activities of the credit union. Between 2009 and December 2013, the defendant embezzled more than $400,000 from credit union accounts by transferring the funds into his and his family members’ accounts for his and their personal use. Over that period of time, the defendant was also responsible for preparing and submitting certified quarterly call reports to the National Credit Union Administration (“NCUA”). The defendant caused false quarterly call reports to be filed that overstated the PPDFCU’s net worth to make it appear that PPDFCU was sufficiently capitalized, when in truth and in fact, as he well knew, the PPDFCU was not sufficiently capitalized. As a result, on December 1, 2014, the NCUA facilitated the acquisition of the PPDFCU by a much larger federal credit union.
Barry faces up to 30 years in prison, five years of supervised release and a $1,000,000 fine on each charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Federal Bureau of Investigation.
Pittsburgh Man Sentenced for Possessing Videos and Images of Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County resident pled guilty and has been sentenced in federal court to one year and one day imprisonment, followed by 10 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Matthew Jankowski, 24, formerly of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about June 24, 2014, Jankowski knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Allegheny County District Attorney’s Office, and Indiana County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Jankowski.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pensacola Man Convicted of Child Exploitation CrimesRead the Press Release
PENSACOLA, FLORIDA – Late yesterday, a federal jury convicted Pensacola resident Robert M. Grafton Jr., 29, of attempted enticement of a minor for sex. Additionally, Grafton pled guilty to possession of child pornography just prior to jury selection. The verdict was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2015, Grafton communicated online with an undercover law enforcement officer for the purpose of meeting a 12-year-old special needs child for sexual activity. Grafton was arrested when he arrived at the arranged meeting location in Pensacola. A search of his cellular telephone and digital media at his residence revealed numerous images and videos of child pornography.
For the attempted enticement of a minor charge, Grafton faces a minimum of 10 years in prison and a maximum of life in prison. For the possession of child pornography charge, Grafton faces a maximum of 20 years in prison. The sentencing hearing is scheduled for January 27, 2016.
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, Gulf Breeze Police Department, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pennsylvania teacher sentenced for traveling to engage in sexual conduct with minorRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel S. McGarvey, 45, a teacher from Uniontown, Pennsylvania, was sentenced today to 46 months in prison after he traveled to West Virginia with the intent to engage in sexual conduct with a minor, United States Attorney William J. Ihlenfeld, II, announced.
McGarvey used internet-based websites and text messaging to communicate with a minor female who he believed to be 15 years old. In October 2014, he traveled to Bridgeport, West Virginia for the purpose of engaging in sexual conduct with the aforementioned minor female.
McGarvey pled guilty in April 2015 to one count of “Travel with Intent to Engage in Illicit Sexual Conduct” following an investigation by the Bridgeport Police Department and the West Virginia Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Partner at New York Accounting Firm Pleads Guilty in Manhattan Federal Court to Multimillion-Dollar Accounting Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that MARC WIESELTHIER, a certified public accountant and partner at a New York accounting firm (the “Firm”), pled guilty today to participating in a scheme to obtain millions of dollars in loans by making false statements and providing false and fraudulent documents to two commercial banks based in New York (the “Banks”) concerning the financial condition of a Florida-based cosmetics company (the “Company”) that was a client of WIESELTHIER. WIESELTHIER pled guilty before United States Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “Marc Wieselthier has admitted to lying about the financial condition of a company to induce banks to lend the company millions of dollars. Relying on false information, the banks made loans that ended up defaulting with nearly $5 million still owed. Wieselthier now joins his co-conspirators in awaiting sentencing for his crime.”
FBI Assistant Director in Charge Diego Rodriguez said: “Wieselthier, with the knowledge of his co-conspirators, convinced lenders of his client’s affluence in an effort to mask the true nature of the company’s financial situation. In the end, the banks incurred a significant financial loss as a result of this type of fraud. Today’s plea serves as a reminder that engaging in illegal activity of this sort poses a significant risk to one’s personal freedom.”
According to the allegations contained in the information to which WIESELTHIER pled guilty and statements made during WIESELTHIER’s plea proceeding:
WIESELTHIER was a licensed certified public accountant at the Firm. Since 2009, WIESELTHIER has been a partner at the Firm. The Company and its chief executive officer (“CEO”) were clients of WIESELTHIER, who performed, among other things, year-end audits of financial statements for the Company.
From 2007 through 2014, the Company, through its officers, fraudulently induced the Banks into lending the Company millions of dollars by repeatedly making, and causing to be made, materially false and misleading statements about the Company’s financial condition. Specifically, the Company falsely inflated its sales and accounts receivable on “borrowing base certificates” and in financial statements audited by WIESELTHIER, which were provided to the Banks pursuant to loan agreements between the Banks and the Company. The Company used those falsely inflated sales and accounts receivable to mislead the Banks about the Company’s true financial performance so that the Company could secure and draw down millions of dollars in revolving loans from the Banks that the Company would not otherwise have been entitled to receive.
As a part of the scheme, on an annual basis, WIESELTHIER knowingly issued unqualified audit reports known as “clean opinions” falsely certifying that the Company’s financial statements fairly, and in all material respects, reflected the true financial condition of the Company and were in conformity with generally accepted accounting principles (“GAAP”). In truth and in fact, at the time that WIESELTHIER issued those “clean opinions,” WIESELTHIER knew that the Company’s financial statements falsely overstated the Company’s accounts receivable and understood that the Banks would rely upon those false financial statements in loaning money to the Company. WIESELTHIER hid his accounting work for the Company from his own partners and associates in an apparent effort to conceal the fraud.
In March 2014, the Company defaulted on the loans at issue. At that time, the Company’s outstanding balance on the loans was more than $4.8 million.
* * *
WIESELTHIER, 57, of Plainview, New York, pled guilty to one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
WIESELTHIER is scheduled to be sentenced on March 23, 2016, at 2:30 p.m., before U.S. District Judge Lewis A. Kaplan.
Emanuel Cohen, 71, of Boca Raton, Florida, the former CEO of the Company, and Thomas Thompson, 42, of Coral Springs, Florida, the former sales manager of the Company, previously pled guilty for their roles in the scheme. Cohen and Thompson are scheduled to be sentenced by Judge Kaplan on March 2, 2016 and February 17, 2016, respectively.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Edward A. Imperatore is in charge of the prosecution.
Oregon Attorney Indicted for Employment Tax FraudRead the Press Release
A federal grand jury sitting in Portland, Oregon, returned an indictment yesterday charging a resident of Lake Oswego, Oregon, with 10 counts of willfully failing to collect, truthfully account for and pay over federal employment taxes to the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the indictment, Gary B. Bertoni, had the responsibility to collect, truthfully account for and pay over to the Internal Revenue Service (IRS) federal employment taxes withheld from the wages of the employees of his law firm, Bertoni & Associates LLC. Beginning in approximately the first quarter of 2009 and continuing through 2011, Bertoni failed to pay over to the IRS employment taxes withheld from his employees’ wages as they became due. The indictment further alleges that Bertoni failed to remit monies withheld from employees’ wages for various employee benefits, including health insurance and retirement account contributions. Instead, Bertoni caused his law firm to make thousands of dollars of expenditures for his personal benefit during the 2009 through 2011 calendar years, including payments to his personal bank account totaling more than $300,000.
If convicted, Bertoni faces a statutory maximum sentence of 50 years in prison, a maximum fine of $2.5 million and restitution to the IRS.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked agents of IRS-Criminal Investigation, who are investigating the case and Trial Attorneys Stuart A. Wexler and Quinn P. Harrington of the Tax Division, who are prosecuting the case.
Ohio man convicted of failure to update sex offender registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Convicted sex offender Richard Doman, 46, of Lorain, Ohio, was convicted in federal court today after he failed to properly update his registration status, United States Attorney William J. Ihlenfeld, II, announced.
Doman was convicted in 2003 of “Statutory Sexual Assault” and “Indecent Assault” in the Court of Common Pleas of York County, Pennsylvania. As a result of that conviction, he is required to register as a sex offender. Doman moved from Ohio to West Virginia in 2014 without updating his sex offender registration.
Doman pled guilty today to one count of “Failure to Update Sex Offender Registration.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro and former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. District Judge Irene M. Keeley presided.
Nottingham Woman Sentenced to Three Years in Prison for Workers’ Compensation FraudRead the Press Release
Barbara Stanley, 62, of Nottingham, PA, was sentenced yesterday to three years in prison after conviction at trial of five counts of wire fraud, two counts of theft of government funds, one count of making false statements, and two counts of making false statements regarding workers' compensation benefits, announced United States Attorney Zane David Memeger.
At trial, in August 2015, the defendant had been convicted of scheming to defraud the Department of Labor out of workers’ compensation benefits between July 2006 and December 2010 by concealing the fact that she had recovered from her work-related injury. She was also convicted of stealing the approximately $164,000 in workers’ compensation benefits that she received during that time period, and making false statements about her medical condition to the Department of Labor. The defendant was further convicted of stealing approximately $35,000 in Office of Personnel Management (OPM) disability retirement benefits that she received at the same time that she was receiving workers’ compensation benefits, and falsely denying her receipt of the OPM disability retirement benefits, resulting in total losses to the government of approximately $199,000.
In addition to the prison sentence, the Honorable Paul S. Diamond also imposed three years of supervised release to follow incarceration. A hearing to determine the exact amount of restitution is scheduled to take place on December 1, 2015.
The case was investigated by the United States Postal Service Office of the Inspector General, the Department of Labor Office of the Inspector General, and the Office of Personnel Management Office of the Inspector General and was prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Mary E. Crawley.
North Port Man Sentenced for Possessing and Making Counterfeit CurrencyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Peter Bonfiglio (28, North Port) to two years and one month in federal prison for making and possessing counterfeit Federal Reserve notes. He pleaded guilty on August 19, 2015.
According to court documents, Bonfiglio, together with his co-defendant, Jaret Santa, was arrested by deputies from the Sarasota County Sherriff’s Office after Bonfiglio tried to pay for merchandise at a retail store using a counterfeit $100 bill. Santa had supplied the note to Bonfiglio, who then tried to pass it at another store before deputies arrested them both. Following their arrests, the deputies located approximately $4,600 in counterfeit $100 bills in their car. Further investigation revealed that between January 5, 2015, and February 2, 2015, the pair had passed approximately $5,500 in counterfeit $100 bills at various stores and businesses.
Santa has previously pleaded guilty for his role in this case. His sentencing hearing is scheduled for January 6, 2016.
This case was investigated by the United States Secret Service with assistance from the Sarasota County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Jay Hoffer.
Non-Indian Man from Albuquerque Pleads Guilty to Burglarizing Two Isleta Pueblo HomesRead the Press Release
ALBUQUERQUE – Roman I. Trujillo, 28, a non-Indian man residing in Albuquerque, N.M., pleaded guilty today in federal court to burglarizing two homes in Isleta Pueblo, N.M., under a plea agreement with the U.S. Attorney’s Office.
Trujillo and his co-defendant, Danielle Bercier, 34, a non-Indian woman also residing in Albuquerque, were arrested on Jan. 29, 2015, and charged in a criminal complaint with burglary occurring in Indian Country on the Isleta Pueblo Indian Reservation. According to the complaint, on Jan. 29, 2015, officers of the Isleta Pueblo Tribal Police Department responded to calls regarding burglaries at two residences in the Pueblo. At the second residence that was burglarized, officers came upon Trujillo who was fleeing from the residence in a vehicle in which Bercier was a passenger. Trujillo led the officers on a chase which ended when Trujillo crashed his vehicle.
Trujillo and Bercier were subsequently charged in a four-count indictment filed on Feb. 25, 2015. The indictment charged both Trujillo and Bercier with two counts of burglary of a dwelling. It also charged Trujillo alone with driving a vehicle in such a manner that endangered the life of another person and receiving stolen property, a 2006 Toyota Tacoma truck, on Jan. 28, 2014, in Indian Country in Valencia County, N.M.
During today’s proceedings, Trujillo pled guilty to the two burglary counts and admitted that on Jan. 29, 2015, he forced his way into two homes in Isleta Pueblo while Bercier stayed outside as a lookout. Trujillo admitted that in the first home he stole property worth $1,500.00, and at the second home he stole two cellphones. Trujillo acknowledged that he knew or should have known that the truck he was driving as he attempted to evade arrest was a stolen vehicle.
At sentencing, Trujillo faces a statutory maximum penalty of three years in prison on each of the two burglary counts. Trujillo has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
Bercier has entered a not guilty plea and is in custody pending trial which is currently scheduled for Jan. 25, 2016. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
New York Doctor Sentenced to More Than Three and A Half Years in Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with a practice in Rockville Centre, New York, was sentenced today to 46 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Brett Halper, 41, of Glen Head, New York, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including Halper, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $11.5 million to date through forfeiture.
According to documents filed in this and related cases and statements made in court:
Halper admitted that from January 2011 through April 2013, he accepted bribes in return for referring patient blood specimens to BLS and was often paid in excess of $5,000 per month. Halper’s referrals generated approximately $2,900,000 in lab business for BLS.
In addition to the prison term, Judge Chesler sentenced Halper to serve two years of supervised release and fined him $100,000. Halper must also forfeit $325,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Marc Agnifilo Esq., New York
New Orleans Office Manager Sentenced for Role in $50 Million Fraud SchemeRead the Press Release
WASHINGTON – The office manager of a home health company at the center of a $50 million fraud scheme in New Orleans was sentenced to prison today for participating in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General's Medicaid Fraud Control Unit made the announcement.
Joe Ann Murthil, 58, of New Orleans, was sentenced by Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to serve 48 months in prison. In addition to the prison term, Murthil was ordered to pay $14,147,275 in restitution.
Murthil, Memorial Home Health Inc.’s (Memorial’s) office manager, assisted with the payment of illegal kickbacks to patient recruiters and submitted claims to Medicare falsely stating that patients were homebound and had received services. From 2007 through 2014, Memorial and the other companies in this scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General's Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. This case was prosecuted by Trial Attorneys William Kanellis and Antonio Pozos of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.justice.gov/criminal-fraud/health-care-fraud-unit.
New Orleans Office Manager Sentenced for Role in $50 Million Fraud SchemeRead the Press Release
The office manager of a home health company at the center of a $50 million fraud scheme in New Orleans was sentenced to prison today for participating in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General's Medicaid Fraud Control Unit made the announcement.
Joe Ann Murthil, 58, of New Orleans, was sentenced by Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to serve 48 months in prison. In addition to the prison term, Murthil was ordered to pay $14,147,275 in restitution.
Murthil, Memorial Home Health Inc.’s (Memorial’s) office manager, assisted with the payment of illegal kickbacks to patient recruiters and submitted claims to Medicare falsely stating that patients were homebound and had received services. From 2007 through 2014, Memorial and the other companies in this scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General's Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. This case was prosecuted by Trial Attorneys William Kanellis and Antonio Pozos of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’ Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Orleans Man Sentenced for Conspiracy Related to Falsifying Records for Gun PurchaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ORONDE GABRIEL, age 31, of New Orleans, was sentenced today after previously pleading guilty to one count of conspiring to falsify ATF records related to the purchase of a firearm.
U.S. District Judge Sarah S. Vance sentenced GABRIEL to 50 months in prison, to be followed by three years of supervised release and a $100 special assessment.
According to court documents, GABRIEL conspired to assist two other individuals in the purchase of a firearm from Academy Sports in Elmwood on June 9, 2013. GABRIEL was a previously convicted felon and prohibited from buying a firearm. The individual who purchased the firearm falsified an ATF form regarding the true ownership of the firearm, which is a federal offense.
U.S. Attorney Polite praised the work of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) led the investigation along with assistance from the St. Bernard Sheriff’s Office. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.
Morris County, New Jersey, Plastic Surgeon Found Guilty of Evading Taxes on More Than $5 Million in IncomeRead the Press Release
NEWARK, N.J. – A plastic surgeon with a practice in Basking Ridge, New Jersey, was convicted today by a federal jury of fraudulently diverting millions in corporate earnings for his personal use, costing the United States nearly $3 million in tax revenue between 2006 and 2010, U.S Attorney Paul Fishman announced.
David Evdokimow, 55, of Harding Township, New Jersey, was convicted of all eight counts of a superseding indictment charging him with one count of conspiring to defraud the United States, four counts of personal income tax evasion and three counts of corporate tax evasion. He was convicted following three-week trial before U.S. District Judge Noel L. Hillman in Camden federal court. The jury deliberated for a day before returning the verdict.
According to the superseding indictment and evidence at trial:
Evdokimow ran his medical practice through a corporation called De’Omilia Plastic Surgery P.C. (De’Omilia). He conspired with others to conceal millions of dollars of taxable income from the IRS by forming shell corporations and then having trusted associates open bank accounts for those corporations. Evdokimow then convinced these trusted associates to give him their signatures or signature stamps so that he had full access to the shell company bank accounts while at the same time being able to conceal his connection to those accounts. He and the other conspirators then funneled millions of dollars in De’Omilia income into the bank accounts of the shell corporations and falsely claimed that these transfers were legitimate business expenses. Evdokimow also used bank accounts in the name of De’Omilia to pay his personal expenses, and falsely claimed those were business expenses too.
Evdokimow used the shell corporation and De’Omilia bank accounts to pay for more than $5.8 million in personal expenses, including designer apparel, jewelry, vacations, artwork, and multiple residences, all of which he falsely claimed as business expenses.
Evdokimow also opened accounts at several banks in order to cash checks received directly from patients for professional medical services. Between 2009 and 2011, Evdokimow cashed over $360,000 in checks from patients, which he failed to report on his federal income tax returns.
Evdokimow was convicted of concealing over $5.8 million in income from tax years 2006 to 2010. By concealing this income, Evdokimow evaded paying almost $3 million in taxes during that period.
Each of the counts with which Evdokimow is charged carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 24, 2016.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorneys Paul Murphy and Justin Herring of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: James Kridel Esq., Clifton, New Jersey
Monongalia County man sentenced for possession of child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Frohnhofer, 44, of Bruceton Mills, West Virginia, was sentenced today to 70 months in prison for possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Frohnhofer was previously convicted of “Criminal Sexual Penetration” in 1996 in New Mexico, “Felony Menacing – Real/Simulated Weapon” in 2008 in Colorado, “Failure to Comply with Sex Offender Registration Requirements” in 2008 in Texas, and “False Imprisonment” in 2009 in New Mexico.
Through an investigation by the West Virginia State Police Internet Crimes Against Children Unit, Frohnhofer was discovered in possession of various images of child pornography. He pled guilty in August 2015 to one count of “Possession of Child Pornography.”
Assistant U.S. Attorney Stephen Vogrin and former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.